3 Ways Your Credit Score Impacts Your Life
This is a guest post from Zach of moneyedup.com
During
tough economic times, some people find themselves in a situation where
their credit can be adversely affected based on difficult financial
decisions. It may be a decision to delay payment on a credit card, or
fall behind on a mortgage payment, or allow a doctor bill to go into
collections. While it may be unavoidable, it is important to maintain a
long view of your credit standing, because a low credit score can impact
much more than your ability to obtain credit. In the long run that
could be the least of your worries. There are three ways your credit
score impacts your life: Borrowing costs, employment, and insurance.
Higher Borrowing Costs
Most people are aware that, if they fall within a lower credit score range, they are going to have more difficulty obtaining credit on favorable terms on long term loans. The greater concern should be for the cost of your existing credit. If you existing credit cards, or variable line of credit, you could find your rates increasing once your creditors see that their risk has increased.
If you are a renter, you may find yourself unable to obtain a new lease if you need to move. Private landlords may be willing to lease you their property, but only if you pay them six month’s rent in advance. And, they are likely to charge you a higher amount of rent.
Employment
According to recent data, nearly 60% of employers conduct a credit check on prospective employees prior to hiring them. Although most employers will deny that your credit history will influence their hiring decision (they use credit reports to verify Social Security and past employment information), many would be reluctant to hire a person they view as irresponsible. Retailers or any employer involved in finance aren’t likely to hire someone who, in their view, may make some bad decisions due to their being in a distressed financial situation.
Insurance
Insurance companies rely upon studies that show people with lower credit scores also present a greater risk of claims. As part of their annual or semi-annual check on your driving record, they may also review your credit report. A negative change in your credit score could result in a higher premium payment.
Sometimes bad things happen that can lead to a drop in your credit score and, for many people its only temporary. Watching your credit score will also help you with protecting your identity. But, with so much at stake – higher borrowing costs, higher insurance costs, and limited employment options – every effort should be made to start rebuilding your score.
Insurance: A Guide
"Remember kids, I have life insurance" - Adam Savage
This is a guest article from Tatyana Levin
These days one must be financially savvy. Money is not easy to come by and should be managed carefully. With the availability of tools that make it easy to keep track of current events, the stock market, and even your own money, it would be almost a crime to not utilize these tools to make the best and most informed financial decisions. Unfortunately, the more there is, the more there is to keep track of. This applies both to tracking tools and money (the small curse within the comfort of having money to keep track of).
The savvier ones of us dabble in investments, and the savviest make their living that way. The key is that they know what to invest in. Not magically, of course; investors do a significant amount of research to learn how to optimize their portfolios, but they have the understanding.
A grossly overlooked investment is insurance. This may be because is not typically referred to as an investment with the exception of whole life insurance that has a specific investment component within it. Webster’s defines the word “invest” as a commitment of money for a return and “insurance” as a guarantee. This makes insurance the safest type of investment, because your returns are guaranteed. But returns are not always financial in the case of insurance. They can be, if there is an unforeseen accident, but the most certain return is the feeling of security.
Now there are many different types of insurance, and what you need depends on your current situation. Obviously you only need auto insurance, found using auto insurance leads if you have a car, and you only need renter’s insurance if you rent and have possessions that you would need insured. Insurance is for those who have something to lose. With an attachment to something, either emotional of physical (or dependence, not like physically being glued to your car), comes the fear that it will be damaged or ruined in some way. For example, if your house caught on fire, you would be devastated. What would add insult to injury is not having a way to recover from this horrible disaster.
These types of examples are not unique to this article. That is the way that insurance is sold. As they say that clichés are clichés for a reason, insurance is promoted this way for a reason. The foundation of the concept of insurance is uncertainty, and it is the same uncertainty that is conjured up when investing.
The main difference between insurance and investment is that not having insurance creates a feeling of uncertainty while investments by nature are uncertain. Therefore, investing in insurance creates security and is the only secure investment that exists (and is legal). Getting insurance should be one of the easier financial tasks if you apply all the resources available with technological advances like smart phones.
About the Author: This article was written by Tatyana Levin, a copywriter for InsuranceFiles.com
During
tough economic times, some people find themselves in a situation where
their credit can be adversely affected based on difficult financial
decisions. It may be a decision to delay payment on a credit card, or
fall behind on a mortgage payment, or allow a doctor bill to go into
collections. While it may be unavoidable, it is important to maintain a
long view of your credit standing, because a low credit score can impact
much more than your ability to obtain credit. In the long run that
could be the least of your worries. There are three ways your credit
score impacts your life: Borrowing costs, employment, and insurance.Higher Borrowing Costs
Most people are aware that, if they fall within a lower credit score range, they are going to have more difficulty obtaining credit on favorable terms on long term loans. The greater concern should be for the cost of your existing credit. If you existing credit cards, or variable line of credit, you could find your rates increasing once your creditors see that their risk has increased.
If you are a renter, you may find yourself unable to obtain a new lease if you need to move. Private landlords may be willing to lease you their property, but only if you pay them six month’s rent in advance. And, they are likely to charge you a higher amount of rent.
Employment
According to recent data, nearly 60% of employers conduct a credit check on prospective employees prior to hiring them. Although most employers will deny that your credit history will influence their hiring decision (they use credit reports to verify Social Security and past employment information), many would be reluctant to hire a person they view as irresponsible. Retailers or any employer involved in finance aren’t likely to hire someone who, in their view, may make some bad decisions due to their being in a distressed financial situation.
Insurance
Insurance companies rely upon studies that show people with lower credit scores also present a greater risk of claims. As part of their annual or semi-annual check on your driving record, they may also review your credit report. A negative change in your credit score could result in a higher premium payment.
Sometimes bad things happen that can lead to a drop in your credit score and, for many people its only temporary. Watching your credit score will also help you with protecting your identity. But, with so much at stake – higher borrowing costs, higher insurance costs, and limited employment options – every effort should be made to start rebuilding your score.
Insurance: A Guide
"Remember kids, I have life insurance" - Adam Savage
This is a guest article from Tatyana Levin
These days one must be financially savvy. Money is not easy to come by and should be managed carefully. With the availability of tools that make it easy to keep track of current events, the stock market, and even your own money, it would be almost a crime to not utilize these tools to make the best and most informed financial decisions. Unfortunately, the more there is, the more there is to keep track of. This applies both to tracking tools and money (the small curse within the comfort of having money to keep track of).
The savvier ones of us dabble in investments, and the savviest make their living that way. The key is that they know what to invest in. Not magically, of course; investors do a significant amount of research to learn how to optimize their portfolios, but they have the understanding.
A grossly overlooked investment is insurance. This may be because is not typically referred to as an investment with the exception of whole life insurance that has a specific investment component within it. Webster’s defines the word “invest” as a commitment of money for a return and “insurance” as a guarantee. This makes insurance the safest type of investment, because your returns are guaranteed. But returns are not always financial in the case of insurance. They can be, if there is an unforeseen accident, but the most certain return is the feeling of security.
Now there are many different types of insurance, and what you need depends on your current situation. Obviously you only need auto insurance, found using auto insurance leads if you have a car, and you only need renter’s insurance if you rent and have possessions that you would need insured. Insurance is for those who have something to lose. With an attachment to something, either emotional of physical (or dependence, not like physically being glued to your car), comes the fear that it will be damaged or ruined in some way. For example, if your house caught on fire, you would be devastated. What would add insult to injury is not having a way to recover from this horrible disaster.
These types of examples are not unique to this article. That is the way that insurance is sold. As they say that clichés are clichés for a reason, insurance is promoted this way for a reason. The foundation of the concept of insurance is uncertainty, and it is the same uncertainty that is conjured up when investing.
The main difference between insurance and investment is that not having insurance creates a feeling of uncertainty while investments by nature are uncertain. Therefore, investing in insurance creates security and is the only secure investment that exists (and is legal). Getting insurance should be one of the easier financial tasks if you apply all the resources available with technological advances like smart phones.
About the Author: This article was written by Tatyana Levin, a copywriter for InsuranceFiles.com
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