Credit scores have always been rather nebulous. There are various speculations about how they are calculated and what they impact. This week’s blog explores what your credit score actually impacts. It is common knowledge that your credit score determines your approval for large purchases like homes or cars. They can also affect your eligibility when opening a new credit card account. What many fail to realize is the impact your credit score has on day-to-day expenses. Over time, your credit can be impacted by daily expenses and it can be very costly.
For instance, your credit is checked when you inquire about quotes for internet or cable services. Depending on your credit score, the company will require a security deposit in order to start your services. Without a security deposit, you won’t be able to use the provider’s services.
The same process is required when you setup an account with electricity or gas companies for your home. Security deposits can range from $100 to $250 per account. These costs can easily put a strain on your finances.
Another less commonly known factor that impacts your credit score is the amount you are quoted for car insurance and the APR you pay on your car. A less than desired credit score can add $50 each month to your car insurance bill. This averages at $600 more a year – wouldn’t this money be better served paying off your debt? The same holds true for your car’s APR. You could easily be paying 0% APR instead of 5%. Imagine what 6 years of interest at a 5% rate could be used for, if you had the credit score to qualify you for that 0% interest rate.
If you don’t address your poor credit, it will cost you. There is no reason to continue living with the burden of a low credit score and the additional expenses it adds each month. PCS Debt Relief can help you raise your credit score. Our advisors are familiar with various scenarios of people experiencing financial hardships. We will help you overcome whatever ails your credit’s health. With zero obligation to enroll and a free consultation, reclaim your life by calling us at (636) 209-4481.