COST OF LOW CREDIT SCORE: info from the Credit Secrets Bible

http://www.CreditRepairPublishing.com

LOW CREDIT SCORE: Five Ways Your Credit Score Could Be Costing You a Fortune. While some surveys show
that 9 out of 10 consumers
are unaware what their credit
score is, I'd like to quickly
share with you how your
credit score could be costing
you a fortune in more ways
than you can imagine. We all know a low
credit score will make
everything in the world of
finance more expensive
because of higher interest
rates from lenders due to
being considered a greater
credit risk (i.e. higher
interest rates on car, homes
and credit cards). While
this may be considered common
knowledge by some, it's truly
devastating effects are
understood by few. For example. If you
purchase a $200,000 home on a
30 year fixed mortgage at 8%
interest instead of 6%
(because of your credit
score); that 2% is going to
end up costing you a total of
$96,934.11 over the term of
the loan. Now, think about
how many "extra" years you'll
have to work to pay off
$96,934.11 because of an
extra 2% in interest? The part few people
talk about is all the other
areas in life where a low
score will increase your cost
of living on an annual basis.
For example. In addition to
paying more for a car, home
and credit cards, a low
credit score will most likely
have you paying more for the
following as well. 1.) AUTO INSURANCE.
As many as 92% of the 100
largest personal automobile
insurers use credit
information to underwrite new
business, according to a 2001
study by Conning & Co., an
insurance-research and asset-
management firm. 2.) HOMEOWNERS
INSURANCE. It's thought many
insurance companies see a
correlation between low
credit scores and increased
property insurance claims.
Therefore, a low score will
result in higher rates. 3.) LIFE and HEALTH
INSURANCE. Customers who are
unable to pay their monthly
insurance premium thereby
pass along that increased
cost to the insurance company
whose stuck with the bill
resulting in a loss for the
company. Since customers who
pay without lapse are more
profitable it is felt by many
that a low credit score now
even affects a monthly life
and/or health insurance
premium negatively. One of the more
shocking areas where a low
credit score will you cost
you is in the area of
employment. It's estimated
as many as 42% of employers
now do credit checks on
applicants before hiring them
(according to a 1998 survey
by the Society for Human
Resource Management). While many employers
claim they only do it to
"verify" information on your
application (such as where
you live and where you have
worked etc.) we can both
assume they are taking the
liberty to "have a peek" at
how you handle your financial
affairs as well. According
to the Public Research
Interest Group (PIRG) as many
as 79% all credit reports
contain errors - 25% of which
are serious enough to cause
the denial of credit
(according to a 2004 report). And that's all the more
troubling in light of the
increasing impact a bad
credit report can have, says
Ed Mierzwinski, director of
PIRG's consumer program.
"It's outrageous that the
credit bureaus are claiming
their scores are accurate
enough to take people's lives
and screw with them like this".

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[LakeRafiD]

@bammcredit

I agree.

[bammcredit]

Good basic information about credit.