Most people don’t realize exactly how important a good credit score is these days. Everyone needs a good credit score. It’s critical. The credit score is the single largest component bank and other lending institutions look at when extending credit. The ability to borrow and use other people’s money is absolutely essential. Less than 1% of the U.S. population could sustain the lifestyle they live without borrowing money. In other words a person’s credit score is their lifeline. It’s sad but true that banks make life-changing decisions based on a number. The following are 8 consequences of having a poor credit score
1) Health insurance costs more
2) Auto insurance costs more
3) Have to pay a higher deposit for an apartment
4) Must pay a mandatory deposit for cable
5) Must pay a mandatory deposit for electricity
6) Must pay a mandatory deposit for hot water
7) Must pay higher interest rates for financing a vehicle (If your credit score will allow you to finance such a large purchase)
8) Must pay higher interest rate to finance a home (If your credit score will allow you to finance such a large purchase)
So if a person has a lower credit score that means they are more inclined to be a high risk driver? Or they are more prone to being physically injured? Well, nobody said all the rules make logical sense. That’s just the way the rules are and we all got to live by them. It’s pretty weird how it works, but when a person has poor credit it actually costs a lot more to live.
By: Raj Shah