| of all, you need to understand what is meant by a | | | | Reason #4 Get more affordable life and health |
| "credit score." The fact is, most consumers still don't | | | | insurance. Many consumers don't know that the |
| understand that their credit score measures their credit | | | | premiums they pay for their life and health insurance |
| risk. Your credit score, sometimes called a FICO score | | | | are affected by their credit score. Insurance |
| for the Fair Isaac Corporation, is based on information | | | | companies spend a lot of time and money trying to |
| about you from companies that gave you credit in the | | | | figure out which customers will make their business |
| past. The lower your credit score, the higher the risk | | | | more profitable. And the insurers have determined that |
| you pose to banks and other lenders. In this article, we | | | | customers with low FICO scores have a harder time |
| will spell out five reasons why raising your credit score | | | | paying their monthly premiums. So, they reward |
| will improve your life. | | | | customers with a better credit score by offering them |
| Reason #1 A higher credit score will get you a more | | | | a lower premium on life and health insurance. |
| affordable mortgage. Particularly in these days of | | | | Reason #5 Land a better job. You may be shocked |
| tightening credit, banks pay close attention to your | | | | to learn that more and more employers are doing |
| FICO score when you apply for a home loan. Improve | | | | credit checks on job applicants before hiring them. |
| your credit score and get a lower interest rate. Just a | | | | While the employers may get your credit report to |
| 2% reduction in the interest rate on a 30 year fixed | | | | verify information you put on your job application, |
| mortgage on a $200,000 home will save you over | | | | what's to stop them from seeing how you handle your |
| $96,000! Now, isn't that worth doing a little work on | | | | financial affairs, too It would be a shame to lose out on |
| improving your credit score | | | | a good-paying job just because you were late on a |
| Reason #2 Pay less for your car. The interest rate on | | | | couple of credit card payments. |
| your auto loan is closely linked to your credit score. | | | | Many more aspects of your life are being affected by |
| Clean up your credit report, and you'll be able to afford | | | | your credit score than you might have imagined. Raise |
| a nicer car for the same monthly payments! | | | | your score, and you may well raise your standard of |
| Reason #3 Lower your auto insurance premiums. It's | | | | living through lower interest rates, a better job, and a |
| true! Many auto insurance companies check your | | | | more affordable lifestyle. But how can you repair your |
| credit score before they set the premium on your | | | | poor credit rating There are many options, ranging |
| insurance. They think that a high score means you | | | | from credit restoration companies (some of whom are |
| might be a safer driver. It makes a lot of sense to play | | | | reputable and affordable) to do-it-yourself plans. You |
| along with their rating game, if it means you'll save | | | | owe it to yourself to look at all the options, and then to |
| money on car insurance. | | | | take action. |