Deep Dark Secrets About You Based On Your Credit Score
If you want to really know about a person, ask them what their credit score is. The financial industry is beginning to figure that out.
Have you ever wondered why your credit score has become so important to lenders, employers, creditors and insurance companies? Why do they care so much about a credit score, it’s just a number. The answer is about what’s in it for them!!
What Is In A Score?
Your credit score tells the financial industry how you handle money and your personal finances. But if they are making money from the interest, fees and penalties they charge, why would the financial industry care?
Lenders Care About You & Your Score
Lenders want to make sure you pay your loans back. A high credit score shows lenders that you take your debts seriously and are more likely to pay back any money borrowed.
Creditors Are Interested In Your Score
Creditors want to make sure you do not become so sloppy in your payment habits that you end up as a delinquent account. Credit card accounts that end up delinquent are bad for you plus they cost the credit card companies money. So a low credit score could possibly be from not paying your bills on time. If you always make late payments, a credit card company would not be interested in adding to your debt.
Your Insurance Company Wants To Know
Insurance companies want to make sure you pay your premiums and don’t wreck your property. If you have a low credit score insurance statistics have shown that the tendency to be careless increases.
The only way an insurance company will be around to pay for the catastrophic claims is for them to turn a profit. If they take on too many policyholders who do not pay premiums or have too many claims, they will not have any money for the huge claims. So insurance companies are starting to use credit scores as a financial indicator.
Employers Care About Your Score More Than You Know
Employers want to make sure you are reliable. Your credit score is a good indicator of reliability. Will you show up for work, call in sick a lot or do a good job while at work? These are all loaded up in your credit score.
In a tight job market employers can be choosy on whom they hire and they are using credit scores as a break-point.