Thursday, 20 January, 2022

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How Interest Rates Can Damage Your Credit Scores and What You Can Do to Change It

What many people fail to realise is the powerful effect that interest rates can have on their lives and financial resources and so they blithely sign up for a loan or other financial package totally oblivious to this little fact.

The end result? They end up paying way over the odds for a fairly small sum of money and then they wonder why their bank account has become so depleted trực tiếp bóng đá hôm nay. Sure, that 5% interest rate may not sound especially troubling or hard to handle at this time when you are in a god job with excellent promotion prospects, but things will become much more acute when your financial situation takes a turn for the worse.

The interest rates have taken on a whole new level of significance in recent times as a direct result of the recession which has hit the nation, and hard. Banks are no longer quite as eager to provide cash as they once were and so they are now much more cautious about who is entitled to get their hands on the purse strings.

A free credit score system is your ticket to rehabilitating your credit rating which in turn, will make you a far more attractive customer to the bank. The bank is concerned with two primary issues:

In a recent 4-3 decision, the Michigan Supreme Court has ruled that insurance companies can use credit scores to set insurance rates. The insurance companies have long insisted that there is a link between bad scores and bad drivers. That is to say, if you have a low score, you must be a bad driver. Justices Maura Corrigan wrote the majority opinion and were joined by Justices Stephen Markman, Robert Young, and Elizabeth Weaver. Justices Marilyn Kelly, Diane Hathaway, and Michael Cavanagh would have upheld the actions of the insurance regulators in banning the use of scores in issuing discounts.

This means that many people in Michigan may see an increase in their auto or home-owner insurance rates by simply having a low score, regardless of how long you have been driving with a clean record. The insurance industry will be giving discounted premiums to those who have high scores, which means in order to pay for the discounted premiums, those with low credit scores may receive an increase in their premiums. Also, keep in mind that having auto insurance is a requirement to drive a car in Michigan. So those with low scores will not be able to simply do without auto insurance.

So if your credit score is low because you live in Michigan and have been out of work and cannot meet your monthly bills, life may about to get harder on you. This is another increase in cost of living in Michigan. So it is more important now to get your finances in order and do something about increasing your 

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