Your Credit Score - How Much Is It Costing You?
Do you know your credit score? Do you know how it affects your life?
We all know that our FICO (credit) score is important anytime we make a purchase. It will determine the amount of interest we pay on homes, automobiles, credit cards or any major purchase. Just a 1% increase in your interest rate (from 6% to 7%) on a $100,000 mortgage will add up to about $65.00 per month...which equals $23,400 over the life of the loan.
But, did you know that this score will also affect many other aspects of your life? Insurance companies, landlords and employers are now starting to let the credit score determine their approval rating.
Insurance
Your credit score can affect your auto insurance...your homeowners insurance...as well as your life and health insurance. They won't call it a credit score, though. And it might be calculated just a bit differently! Their term is "Insurance Score"...but it means the same thing.
Insurance companies use credit information to underwrite new business. Apparently, they find a correlation between low credit scores and increased insurance claims. A lower score will cause a higher premium.
It's just not worth it to have anything detrimental on your credit report.
Employment
Yes, believe it! Many employers check credit scores before they hire anyone. They claim that they check your credit to verify information...but don't assume that they're not looking at how you handle your financial affairs.
This is yet another reason to frequently check your credit report and take care of any errors quickly!
Pam Rumley is a veteran real estate broker in the Nashville, TN area. She is a true Exclusive Buyer's Agent, which means that her office never takes listings. This fact assures that there is never a conflict of interest regarding your real estate transaction. You can be assured of receiving 100% of her attention and loyalty - 100% of the time!
For more information, visit her comprehensive website http://www.NashvilleRealEstateAuthority.com Be sure to check out her "Real Estate University" section, where you will find more informative articles on a variety of topics concerning homebuying.
We all know that our FICO (credit) score is important anytime we make a purchase. It will determine the amount of interest we pay on homes, automobiles, credit cards or any major purchase. Just a 1% increase in your interest rate (from 6% to 7%) on a $100,000 mortgage will add up to about $65.00 per month...which equals $23,400 over the life of the loan.
But, did you know that this score will also affect many other aspects of your life? Insurance companies, landlords and employers are now starting to let the credit score determine their approval rating.
Insurance
Your credit score can affect your auto insurance...your homeowners insurance...as well as your life and health insurance. They won't call it a credit score, though. And it might be calculated just a bit differently! Their term is "Insurance Score"...but it means the same thing.
Insurance companies use credit information to underwrite new business. Apparently, they find a correlation between low credit scores and increased insurance claims. A lower score will cause a higher premium.
It's just not worth it to have anything detrimental on your credit report.
Employment
Yes, believe it! Many employers check credit scores before they hire anyone. They claim that they check your credit to verify information...but don't assume that they're not looking at how you handle your financial affairs.
This is yet another reason to frequently check your credit report and take care of any errors quickly!
Pam Rumley is a veteran real estate broker in the Nashville, TN area. She is a true Exclusive Buyer's Agent, which means that her office never takes listings. This fact assures that there is never a conflict of interest regarding your real estate transaction. You can be assured of receiving 100% of her attention and loyalty - 100% of the time!
For more information, visit her comprehensive website http://www.NashvilleRealEstateAuthority.com Be sure to check out her "Real Estate University" section, where you will find more informative articles on a variety of topics concerning homebuying.
posted by credit at
6:28 p.m.
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