---

A high credit score is a very good thing to have. It makes all sorts of purchases and loans easier to get. If you have acquired a low credit score, the world of finances has become difficult for you to wade through. This is because what is written on your credit reports tells those who read them a story about you.

There are three credit bureaus and the people you make payments to report how well you do this to them. They are Experian, Transunion and Equifax and anyone that you owe money to can report information such as whether or not you made your payments on time. In turn, when you are negotiating to buy something for which you will make payments, new creditors will look to see your credit reports to check on your payment history. If this history isn't good, it will cost you.

One thing people look for to gauge your creditworthiness is the FICO score. FICO stands for Fair, Isaac & Co. and it can range from around 340 to around 840. The best place to be is in the excellent range with a score of around 750-840. A good rating ranges around 660 to 749 with a fair rating around 620 to 659. A poor rating, around 340 to 619, is an area you do not want to be in. If you are ranging in this area, it would be worth your while to invest some time in repairing your credit.

Scores in the poor range can cost you so much more money when you decide to do anything such as buy a big ticket item or rent an apartment. This is because if you have made several late payments in the past or have even defaulted before, people will be less willing to take a chance on you and lend you money. On the other hand, with a good credit rating practically everything is handed to you on a silver platter.

One very important benefit of a high FICO score is the ability to receive a low interest rate for loans, such as mortgages, car loans, credit cards, student loans and personal loans. It also helps you to be able to refinance your mortgage when you are ready to do so. This can save you several thousands of dollars over the years, because the lower the interest rate, the lower will be your interest payments. A high credit score means that lenders can consider you to be a low risk and they can feel confident that they will get the money back that they lend to you..

A high score can also help you move into a new apartment. Landlords are doing credit checks and what they read in your report helps them to decide if they will rent to you or not. If your credit reports show that you have a history of not paying your bills, they may turn your application down. This can make finding a new apartment to move into a long and drawn out process. Once you do find someone who is willing to take a chance on you, you will pay a high price for your low credit score with a high security deposit and/or higher monthly payments. You may even be required to have a co-signer. Convincing someone to co-sign for you can turn out to be another daunting task and the landlord can even make you sign a contract stating that you will be ineligible to have your security deposit returned; all because of bad credit.

Supposing that you turned out to be one of the unlucky ones who, because of bad credit had to pay a large security deposit and higher monthly payments, you can also receive this treatment from the utilities companies. Electric, gas and phone companies, who will be aware of your bad credit, too, will require you to give them a deposit before the utilities will be turned on. One or all of them can require a $200+ deposit. Moving could be a highly expensive endeavor if you are unlucky enough to be singled out by everyone as a highly risky client.

Also with a low credit score your choice of apartment buildings may be limited. The better complexes, after reading your reports, are the ones most likely that will deny your application. You will be forced to live in a complex which may not be to your liking, because your options are limited. The only choices you may have will be in a less desirable area than you would like.

Another consequence of a low credit score is your employability. In the current economy many people are being laid off, therefore, the pool of people looking for work is growing. The higher your credit score, the better your chances are to be considered for a new position. This may be a surprise, but employers check prospective new hires' credit reports as lenders do. When they see that you have a high credit score, they believe that you are reliable and responsible as you have always paid your bills on time. With a low credit score, your resume may be placed at the bottom of the pile.

If the job you are looking for requires a background check, you may be at a disadvantage here, too. Included in a background check is a credit check. A low credit score may keep you from passing it. You may have to consider looking for work in an area that you are not familiar with in order to be working at all.

How about looking for insurance? You would like to receive the lowest monthly payments as possible. A low credit score will ensure that this doesn't happen. Home and car insurance companies base their decisions on how much to charge you on your credit score. They believe that if you have paid your bills on time in the past you will make timely payments to them, too. Those who cannot demonstrate this to them can expect to pay substantially more each month.

You may be aware that cell phone companies do a credit check before entering into a contract with new customers. If you show them that you have a history of paying the bills on time they will not require you to put down a deposit of hundreds of dollars. With a low credit score, this undoubtedly will be your fate.

Be careful when you go to lease a new car or apply for a new credit card. With a low credit score, dealers will have reason to charge you a high interest rate, meaning you will be making higher monthly payments. This can happen with credit card companies, also; they will charge a higher interest rate depending upon how low your FICO score is. But, someone with good credit may be rewarded with a 0% interest rate, no annual fee and maybe even not having to have a credit limit. It's something to aspire to!

As you can see from reading this article, there are several people who are interested in your credit rating. Anything you set out to do from renting an apartment to passing a background check can be affected by your FICO score. This can be a good thing if your score is high, above 700, but if your score falls below 620 you will not be enjoying the result as much. Taking some time and putting in some effort to improve your score would be a worthwhile expenditure of time. You will pay so much less for everything you purchase.

Related Articles on Credit and Loans

1. Understand credit report’s relevance in mortgage
   
2. Debit and Credit
   
3. Cash Advance Today
   
4. Payday Loan by Phone
   
5. How to Protect Your Business from Credit Card Fraud
   
6. ReservationRewards.com Credit Card Fraud Protection
   
7. Introduction to Credit Cards Terminology
   
8. Say No to Credit Card Minimum Payment
   
9. Quick Online Cash Check
   
10. Check into Cash- Cash Advance
    
11. Unsecured Personal Loans and You
    
12. Paying Your Creditors
    
13. The better your credit score, the less money you pay in interest
    
14. Debt elimination
    
15. FAC Wins Bermuda Innovation Award
    
16. Homeowners not as 'crunched' as they think
    
17. Business Credit- Essential For Small Business
    
18. The Business Credit
    
19. Business Credits-The Best Financing For Your Business
    
20. Hi- Speed, Great Power and Performance: VeriFone Vx570
    
21. Some Tactics For Raising Your Credit Score Can Get You Years In Prison
    
22. Getting The Most Out Of Fast Cash
    
23. Other People’s Actions Can Make You Less Desirable To Credit Card Companies
    
24. How To Benefit From Payday Loans
    
25. Pre-approved Loan
    
26. Cash Advance Loans
    
27. Cash Loans Online
    
28. Cheap Payday Loan
    
29. E Payday Loan
    
30. Buying A Car With Bad Credit - Defining An Approach To Get Your Dream Car
    

Latest Articles on Credit and Loans

1. Getting An Expert For Your Loan Modification Helps
   Recently, the economic fall of the United States of America has caused almost everyone to be financially unstable. There is no longer enough security especially for the low to middle income families that have so many bills to pay. There are not enough jobs available in the job market right now to support the families that have balloon or adjustable mortgage payments....
2. Getting Quality Auto Loans Refinancing
   An article describing what auto refinancing is and what are its main advantages and how to choose the right finance company. Unlike any finance company you have ever dealt with, the best ones try to see things other lenders do not, they look for a way to approve a loan instead of finding 10 reasons to decline one....
3. Misguided About Payday Loans?
   Nine out of ten Americans think that payday loans are a useful way to get the money they need, and as many as ten percent of them have received a payday loan. Most borrowers are not poor. Most have an average income between twenty five and fifty thousand dollars. Over half of them own their own homes, and the majority of them have some college education....
4. How To Receive A Payday Loan
   An advance payday loan is more than just a good way to pay for those unexpected bills, they are also a good way to receive money for expected finances, like taking that vacation you have been needing, or to go a concert that's in town, or even to take a hot date that just came up....
5. Budget Stretched To Tight This Week, Apply For A Payday Loan
   Everyone runs into money problems sometimes, but the next time it happens it won't be a problem thanks to advance payday loans. When tight budgets have been stretched too far, and payday is over a week away, apply for a payday loan to take care of any unexpected financial needs, and to avoid late fees and interest charges....
6. A Cash Advance Gets You Cash Fast
   A cash advance is an easy way to get your pay now instead of later. The whole application process is simple and secure. Since you can apply online, you can do it at your own convenience. If you apply today, you can have cash tomorrow. If you could use some express funds without the problems and hassles of a typical loan, consider a cash advance....
7. Good Reasons To Choose The Fha Mortgage Program
   One of the popular choices for those who need it is nothing other than the simple and basic FHA mortgage program. Way back in the 1930’s, the FHA was already the best option for low income families as well as those who were borrowing money for the very first time....
8. Quick Cash Advance Loan – Best Option At The Time Of Financial Crisis
   Working capital requirements for large companies have never been a problem as they have varied options available to get finance for their businesses. Small companies, on the other hand, find it difficult to find capital to operate their respective businesses....
9. Wise Use Of Credit Cards.
   Using your credit cards wisely might be the most important and beneficial decision you can make towards financial health. The reason for this is simple high interest rates on credit cards can cost you more than money if you find yourself unable to make your payments on time....
10. Internet Payday Cash Loans
    Are you going through from crucial hours and need urgent financial aid? You can get a fastest way to secure easy cash till your payday with availing cash advance payday loans. Sometimes the unexpected expenses come up anytime and you find it difficult to meet your needs on time and fall in debt trap. To prevent yourself falling in these situations, you can opt with these loans without any hassle....

Related topics in Business and Finance

Submit Articles © 2009 KeepArticles.com, All Rights Reserved.