Fred Harteis News Articles - Where Bad Credit Hurts the Most

Fred Harteis News Articles - Most people understand that low credit scores will translate into higher mortgage and credit card interest rates. But few realize there are plenty of other insidious ways that a low score can add to a person's costs. Bad credit can also negatively affect your job, utilities, cell phone, elective medical procedures and your marriage.

Car Insurance
Consumers with bad credit pay between 20 percent and 50 percent more in auto insurance premiums than their good-credit neighbors, says Clarence Smith, who authored an insurance study for Conning.

Car Loans
People with poor credit usually pay an interest rate between 19 percent and 26 percent on a new car purchase, compared with the six percent to seven percent average, says Lynch.

Job
Today, 70 percent of companies will check credit before they decide to hire a candidate, says Doug Borkowski, a financial counselor. The fear is that credit problems at home create tension and distraction at work, Lynch says.

Housing
Rental property owners may reject tenant applications with poor credit scores, something only 48 percent of consumers know, according to a CFA (Chartered Financial Analyst) survey.

Utilities
Only 30 percent of those that CFA surveyed know that utilities, too, care about credit scores. Even slow credit indications are enough to slap you with a $500 deposit before the telephone company connects your line or the electric company turns on the juice, Lynch says.

Cell Phones
These providers increasingly rely on credit scores to sort the good risks from the bad credit. Bad credit definitely doesn't get the sweetest deals at Verizon. Instead of contract plans that offer more minutes for your dollar and come with a wider selection of phones, those who do not make the cut must consider pay-as-you-go phones.

Elective Medical Procedures
When Lynch looked into laser eye surgery, the doctor immediately pulled her credit score to see if she qualified for his monthly payment plan. Otherwise, the bill is due in full at the counter. "They're not denying you service, and if it were a mandatory treatment, this would never come up," she says.

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About Fred Harteis: Fred Harteis leads Harteis International. Fred Harteis has a background in agriculture and has created many successful business ventures.