Page 19 - increase your credit score
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Interest Paid Over
APR Interest Paid
Best Score
16.49% $2,891.86 $0
19.49% $3,448.45 $556.59
23.49% $4,204.89 $1,313.03
Other Areas Where Bad Credit Scores Can Hurt You
We tend to think of loans as the main financial product our credit scores affect, but it goes
beyond that.
Utility and cable companies will be more likely to waive a deposit for opening your
account if your scores are in the upper levels.
Insurance companies will charge you higher rates if your scores are lower because
research shows people with lower credit scores are more likely to make claims. Prospective
employers may also run a soft check on your credit to see where you stand.
The lesson here is simple. Bad credit scores can cost you thousands of dollars of interest,
hundreds of dollars in insurance premiums and may even drop you out of consideration
for a job.
How do you bring your scores up into the top tier? That’s what we’re covering in the next
few chapters.
Chapter 4 Summary:
• Credit scores tell lenders how reliable you are in paying back debts on time.
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