Financing content

Auto Financing Online

Fri, 05 Sep 2008 19:22:21 +0000

Auto Financing Online

by: Mike Hamel

More and more consumers are getting their auto financing online instead of from the dealerships where they buy their vehicles. Getting auto financing from a dealership has some benefits:

? Convenience ? vehicles and financing are in one place and the dealer is motivated to find financing for buyers, no matter their circumstances.

? More options ? a dealer?s relationships with a variety of banks and finance companies mean they can offer a range of loans to fit a buyer?s credit rating.

? Special programs ? sometimes dealers can offer manufacturer-sponsored, low-rate programs, but usually only to people with good credit.

But getting auto financing online offers even more advantages:

? Certainty ? buyers know how much they can spend before setting foot on a dealer?s lot.

? Clout ? buyers with financing in hand are treated like cash customers and are in a stronger negotiating position.

? Cash savings ? because of competition, online buyers often get the lowest interest rate possible for someone with their credit rating.

? Calmness ? buyers aren?t subjected to the high-pressure tactics of a dealer?s finance department.

Shopping for your financing first can save you a lot of headaches. If you know how much money you?re qualified to borrow, you can limit your search to a vehicle you?ll actually be able to afford. Why set your heart on a Hummer when your checkbook says Hyundai.

Play it safe

Due to advances in Internet security, online financial transactions are for the most part safe and secure. Still, The Federal Trade Commission offers the following advice regarding online transactions:

? Use a secure browser - software that encrypts or scrambles the purchase information you send over the Internet - to help guard the security of your information as it is transmitted to a website. Be sure your browser has the most up-to-date encryption capabilities by using the latest version available from the manufacturer.

?Check the site's privacy policy, before you provide any personal financial information to a website. In particular, determine how the information will be used or shared with others. Also check the site's statements about the security provided for your information.

? Keep your personal information private. Don't disclose your personal information - your address, telephone number, Social Security number, bank account number or e-mail address - unless you know who's collecting the information, why they're collecting it and how they'll use it.

? Give payment information only to businesses you know and trust, and only when and where it is appropriate - like an order form. Never give your password to anyone online, even your Internet service provider.

A prime example of online auto financing at its simplest is www.PreApprovedAutos.com. Visitors to the site can fill out a simple app, which is instantly submitted to reputable dealers in their area. The dealer with the best offer contact the applicant with a pre-approved loan amount, usually within a few hours. The loan quotes are free and the inquirer is under no obligation to accept the offer.

About The Author

Mike Hamel is Senior Writer for Sales and Marketing LLC (www.salesandmarketingllc.com), an Internet marketing company offering everything from website development and optimization to creating and monitoring cost-effective ad programs. Our specialty is increasing site traffic and improving visitor-to-sale conversion rates using proprietary software and advanced SEM techniques.

Auto Financing Scams

Fri, 05 Sep 2008 17:33:36 +0000

Auto Financing Scams

by: Gregory Ashton

Car dealers are often portrayed as predators just waiting for an unsuspecting customer to come along. This is because many people believe that they are always on the prowl for unsuspecting buyers that are not very knowledgeable about cars. This can be unfair because we can argue that there are car dealers out there who would not cheat just to get an extra profit.

How do you tell the difference?

To avoid becoming a victim of sneaky car dealers, look at the following auto financing scams.

Yoyo scam

You will be allowed by the dealer to bring the car home as soon as possible. The dealer will take care of the financing, a few days later he will contact you again and tell you that there was a problem with your financing plan. He will tell you to set up a new financing scheme through him which, of course, will be at a higher cost and this will also entail a very high profit on the dealer's part.

Be wary of this trick and avoid it at all costs if you detect it. If you have a bad credit standing, don't have your financing done by the dealer and make arrangements for your own financing. If you ever do avail of the dealer's financing, you should never drive the car back to your home immediately. Wait for at least 24 hours just to make sure that the processing of your financing scheme has been completed already. By allowing 1 whole day to pass by, you are assured that the dealer cannot use this scam on you.

Window etching trick

Window etching is a very common scam. What the dealer will do is to offer to etch the VIN number of your car onto the window of the car for a price. Basically, the price ranges from as low as $300 to as high as $1,000. Some buyers think that they did a good job by being able to talk down the price to a few hundred dollars, but unfortunately for them, a few hundred dollars is still a good amount of money. The best way to avoid this kind of scam is for you to buy an etching kit that you can do on your own. This is available in most auto shops and costs around $20. See how much they profit from you!

Preparation fees

For preparing your car, the dealer will often add an additional preparation fee to your bill. Just to conduct a test drive, replace fuses, or take the car's plastic cover off will have your bill increasing by at least $500! If you visit other shops, you can get the information that these add on costs are already included in the MSRP as set by the manufacturer. Some dealers automatically add it to the buyer's order to make it look mandatory. To take care of this scam, you can ask the dealer to classify it as credit (it should be identical to the amount of the preparation fee) on the following line. If the dealer does not agree to this, you can just simply walk away from the dealership.

Market adjustment

The dealer will convince you that the vehicle you want is selling like hot cakes and very popular. In order to sell you the vehicle, they will do some "market adjustments" amounting to a few thousand dollars. This is usually indicated by a tag near the MSRP tag set by the manufacturer. Even if the car you want is very popular and is very much in demand, if it is in stock you should not be tempted because getting a "popular" car is not worth it if you have to pay a few thousand dollars more. You should never pay more than the MSRP set by the manufacturers. If you do, then you are allowing others to take advantage of you.

Warranty extension

Although this type of scam is old already, it is still being used and there are many who fall for this trick. What happens in this kind of scam is that when you make a loan for the car, the dealer will tell you that you are required to purchase an extended warranty because it is one of the conditions of the bank. There is a simple way of avoiding this scam. Ask the dealer to specify clearly in writing that the extended warranty is required for the loan to be approved. The dealer will most probably find a way to have it excluded. If he persists in including the extended warranty, do not do business with this guy and go to other dealerships.

These are some of the most common auto financing scams that are utilized by some car dealers. Always keep these in mind if you are going to buy a car. If you or a friend were treated fairly by a dealer in the past, consider using the same dealership again. It?s a good indication that they do care about their customers and aren?t just looking for a ?fast buck.?

Think very carefully and do not buy on impulse. Good luck to you and go get that car!

About The Author

Gregory Ashton, your resident automobile enthusiast, bringing to you over 20 years of vehicular passion, and expertise; presents for your approval his insider secrets on selecting, buying, and maintianing the car that is ideal for you. http://www.best-car-buying-tips.com.

Are You Really A Twenty First Century Investor?

Fri, 05 Sep 2008 17:15:53 +0000

Are You Really A Twenty First Century Investor?

by: Steven Battle

Real Estate Investors that educate themselves about CURRENT MARKET TRENDS will reap huge returns NOW!!! Information concerning NEW TRENDS in financial resources will open new and more profitable real estate opportunities for your business.

Today?s residential real estate market for investors has become very competitive in most major markets. The vast majority of real estate investing seminars and clubs are encouraging you to search out desperate home owners or distressed properties to be rehabbed.

Not to mention the fact that today?s disillusioned stock investors have now realized that residential real estate investing offers better returns, with less capital risks. As you seek to identify your lucrative real estate opportunities, have you noticed that the good deals are getting harder to find? I am not here to discourage you from investing in real estate, but would like to share real estate investment opportunities and information with you?..opportunities that only a few people are aware of and regularly participate in. That?s right; I am referring to a niche investment market that has VERY LITTLE competition. This unique information is currently setting new trends within the commercial real estate investment community!

I know you are ready for me to tell you about this quiet niche investment market, so I will...... it is?.??. ???..Commercial Real Estate. There are HUNDREDS, maybe THOUSANDS of niche market investment opportunities within Commercial Real Estate. And by the way........ the main reason why so few investors go after commercial real estate, and that might include yourself, is that you're not convinced that you would qualify for commercial financing ! ! Most investors are lead to believe that a 20% down payment is required to start the process for purchasing commercial properties. WELL, THIS IS NOT TRUE!

Let?s do the math now?? financing a property that cost $5 Million dollars with 20% down would require you to put down $1,000,000 and you would still have to add in legal fees and closing costs. Yes, I know that only a few investors or even investment groups are able to meet these down payment requirements. Your first mistake as an investor would be to go to your local bank to seek financing, or worse, go to private or hard money lenders. First, remember the banks are regulated by the federal government and they are required to underwrite conforming loans and second, bank loans tend to be very structured and are generally inflexible to your project needs. In most cases, THESE LOANS will require a 20% DOWN PAYMENT OR MORE! The only benefit of using private or hard money lenders is when" NO OTHER FINANCING OPTIONS EXIST FOR YOU!"

FINANCING is the key ingredient to identifying lucrative real estate investment opportunities, yet, so few people truly understand the power of knowing WHERE to find the right financing and HOW to get it! WHAT IF you had several lenders, today, that would only require you have 2 to 3% down payments (on certain qualified projects)? WOULD THIS BE OF INTEREST TO YOU? A $5,000,000 loan with 2- 3% down payment equates to putting down $100,000 to $150,000. As an individual investor, this down payment would still be pretty steep for you however, today, many residential investors are already joining and forming Investment clubs to increase and enhance their purchasing power. TO ALL residential real estate investors....... the REAL MESSAGE here is that you are closer to buying commercial real estate than you think! This example should make it clear to you that finding the right financing is the FIRST step and the key ingredient to your real estate investing??.. however, there is a PROBLEM.

The problem is that as an investor, you have been trained to shop for properties FIRST, and almost never for financing. Finding the right financing FIRST will save you and make you more money over time, than you purchasing the undervalued properties and selling them later at or above market prices. I will repeat this?.. MOST REAL ESTATE INVESTORS DO NOT UNDERSTAND THE IMPORTANCE OF FINANCING within the investment equation. The ability to save on the amount of the interest rate you are being charged?. month after month?.. year after year? 2 or 3 % or more is huge. You may also find out what I already know?.. . by securing the financing first?..THIS OPENS UP NEW INVESTMENT OPPORTUNITIES!

Let?s review some of the BENEFITS that come with purchasing Commercial Real Estate:

Unlike residential real estate, commercial real estate?s only purpose is to make money for its investors. If there was a 7% cap rate on the $5,000,000 sample property, it would cash flow $350,000 annually.
Do you think you would enjoy having professional tenants with long term leases?
Would it excite you if your investment projects qualify for Non recourse financing?
You can totally eliminate the process of rehabbing properties.
How about this?? YOU no longer have to chase tenants down to collect rent.
You no longer have to pay penalties to lenders for not being in owner occupied properties.
Expand your investment search throughout all 50 states.
Last and probably the MOST BENEFICIAL of all of the perks?.You can qualify to purchase these properties using your commercial tenant's credit rating, business cash flow and their long-term rental leases!

In an era where information rules, the small to medium sized real estate investor can NOW be a "Front Runner" AND a major player within the commercial real estate market!, says Steven Battle

We are searching for like -minded real estate investors and investment clubs that would like to join a Commercial Real Estate Investor Forum. We welcome that you come and ask your commercial financing questions and share your investment experiences with the group. Go to www.amoneybroker.com/ and click on "Join Our Investor Forum."

About The Author

Steven Battle, Commercial Financing Specialist with Amoneybroker.com, has over twenty years of experience in financing, property management, real estate investing, and direct sales.

www.amoneybroker.com/

3 Little Known Tips to Buying Fitness Equipment

Fri, 05 Sep 2008 15:02:11 +0000

3 Little Known Tips to Buying Fitness Equipment

by: Amy Metz

Did you know that buying fitness equipment for your home isn?t really that difficult?

It?s true that the world of fitness equipment can seem like a maze at times and that there are literally hundreds of different types of fitness equipment pieces that might work well for your home arrangement. However, with a little guidance, the process really isn?t that hard and you will be amazed at the bargains that you can find if you just dig a little deeper than the average consumer is usually prepared to. Let?s take a look at some tips to help you out in your quest for new fitness equipment.

1. Look at used equipment. This is where some good deals can be found. Fitness equipment can obtain a weird status in a person?s home. They might have been really excited to buy it initially and dreams of a fit body and monthly gym savings might have filled their head. However, after 3 months, the equipment often sits vacant in that person?s home. Used equipment can be a really good deal due to the fact that it?s often times almost as good as new but now it?s for sale. To you. For cheap. Check out newspapers, Ebay, and other places; compare prices and get a deal.

2. Consider commercial fitness equipment. Often times, you can buy the same equipment that your local gym has. Imagine, you can have that same (gasp!) Stairmaster that has dogged you for years at the local Ballys, right in your basement. This might be appealing to some who have the capital to invest in a large piece of equipment. If you no longer have to pay a $50 monthly fee to go to a gym every month, this might be a really smart investment. Look into commercial equipment, you might be pleasantly surprised.

3. The first two points are almost worthless without considering the financing of your new fitness equipment. When looking to finance your new set of fitness equipment there are tons of important factors to keep in mind. You really don?t want to be paying too much for equipment that might be found at a cheaper price (after everything is considered) elsewhere.

About The Author

Amy Metz is the author of ?Fitness Equipment Financing.? Grab your free copy at http://www.fitnessequipmenters.com.

Automotive Financing - Benefits To Applying Online

Fri, 05 Sep 2008 09:13:28 +0000

Automotive Financing - Benefits To Applying Online

by: Carrie Reeder

You can do everything else online, why not acquire an auto loan as well? Some people are hesitant to use the internet for financial transactions or decisions. They don't realize that online auto loans actually have significant advantages to standard auto loans. There are several benefits of applying online for an auto loan.

Lower interest rate

There are several places where one can get a loan. You can get a car loan from the dealership, bank/credit union, home equity, and online. The online resource typically will have the lowest interest rates of all methods. There are even sites in which auto lenders will compete for your business. This creates much lower interest rates than you could ever imagine at a bank or dealership.

No Additional Fees

Another advantage of an online automotive loan application is the absence of extra fees. You do not have to pay an application fee to apply online. You also will not fine any hidden finance fees for new vehicles when applying online. Not only is it cost effective for you to get an auto loan online, but it is cost effective for the lender as well.

Payment calculator

Using the internet provides a significant advantage of loan awareness. Many online lenders have car loan payment calculators right on their sites. This encourages borrowers to be educated on what an interest rate means to their payment, or how a loan duration can affect the total amount paid, etc. Loan payment calculators allow you as the borrower to know how much you can afford to borrow before even applying.

Convenience

Convenience is possibly the biggest benefit of applying online for an automobile loan. You can sit in the comfort of your own home while you compare and apply for various loans. The approvals are also very quick. During business hours, online auto loans can be approved within an hour of application. The online marketplace has become the place to shop for auto loans. Various benefits including low interest rates, no additional fees, payment calculators, and convenience, have people flocking to these online.

About The Author

Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans.

View our recommended lenders for Car Finance Loans http://www.abcloanguide.com/autoloans.shtml.

Auto Loan After Bankruptcy - Beware Of Shady Lenders

Fri, 05 Sep 2008 07:58:45 +0000

Auto Loan After Bankruptcy - Beware Of Shady Lenders

by: Carrie Reeder

If you have a recent bankruptcy but need an auto loan, you may be surprised at how easy it still can be to get approved for an auto loan. Because the bank can protect themselves by using the vehicle as collateral for the loan, it's much easier to get vehicle financing with past credit problems than it is to get a new credit card or another kind of unsecured loan.

There are many finance companies online competing for your business, to finance your vehicle. Just beware of unethical lending practices. People with bad credit are often prey to lending scams. Bad credit borrowers have fewer lending options than other borrowers and some finance companies take advantage of that fact. Here are 3 things to do to protect yourself from an unethical auto finance company.

1. Compare Rates Among at Least 3 Different Lenders Online - If you have 3 or more loan offers to compare, you are much less likely to take an offer from a lender who is charging excessive interest rates. If you have 3 or more interest rates to compare, you will have a good idea of what the average interest rate is that is being offered to people with credit problems for auto financing.

2. Get Financing Before You Visit a Dealer - If you are going to buy your car from a dealer, make sure you get your financing before you actually visit the an auto dealership. Dealers and lenders often make agreements to work together to charge the borrower a much higher interest rate than they could otherwise get by shopping around. If you have your financing ahead of time, you won't have to accept the financing they offer you there.

3. Apply With Reputable Lenders - If you are applying with lenders who are established and reputable, you minimize your chances of being taken advantage of.

About The Author

Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans.

View our recommended http://www.abcloanguide.com/carloanafterbankruptcy.shtml lenders.

Avoid Playing Auto Financing Poker

Fri, 05 Sep 2008 06:07:40 +0000

Avoid Playing Auto Financing Poker

by: Daniel DeHaven

Finance departments are where dealers make most of their profit (well, financing and after-market products).

Their profit lies on something called the "Finance Reserve." That is the difference between the interest rate the dealer is offering you and the lower interest rate (called the "buy rate") the bank offers the dealer.

For example, lets say you have a credit score of 700. The finance manager offers you a conventional loan through Generic Bank at, say, 6.9%.

But what you don't know, as you sit there negotiating, is that the dealer already has a standing arrangement with the bank that says that any buyer with a credit score of 700 can have a loan at 4.9%. If you go for the 6.9%, the dealer keeps the other 2%. That's the "Finance Reserve." For the dealer, it's just gravy. Cash in his pocket.

Most banks cap a dealer at 3% over the "buy rate," but not all do. According to our latest reports, Ford Motor Credit, for example, has no cap on the dealer mark up. That means you could pay anywhere from 1% to 10% more than what you actually qualify for.

Don't worry, the dealers are not out to get you. This financing reserve sometimes works in your favor. It allows the dealer to offer competing interest rates to consumers who have no chance of getting that rate elsewhere!

Regardless of how cards fall, smart car shoppers get their credit report score and look for loan quotes before they walk into the dealership. You can find more information and receive a no-obligation, free auto loan quote at http://www.buyingadvice.com/

About The Author

Daniel DeHaven is the Editor in Chief of the BuyingAdvice Team (www.buyingadvice.com). He understands the auto business. He's been around it - all of his life. Daniel has been a consumer advocate voice for over 15 years. He has learned every trick and profit ploy car salespeople use... and mistakes buyers tend to make.

?Why You, Why Now? - A Critical Component of a Winning Business Plan

Fri, 05 Sep 2008 05:47:13 +0000

?Why You, Why Now? - A Critical Component of a Winning Business Plan

by: Dave Lavinsky

Business plans continue to be an essential element of the capital-raising process. They must convince investors to take notice - investors that are shrewder today due to the ups-and-downs they have experienced over the past few years.

Adding to the financing challenge is the plethora of high-quality companies, both public and private, in which investors can choose to invest. In this environment, more and more investors are asking companies seeking capital the question "Why You, Why Now"?

The question seems simple at first, but has many complexities. The management team must clearly delineate what it is about the business opportunity that makes it such a good investment now. Should this investment have been made a year ago to cement a market leadership position? Or, is the venture before its time - will slow market adoption cause slow sales over the next few years, and as such, should the investment wait. Questions like these, based on investment failures from the past few years, continue to surface and must be addressed by the management team in their business plans.

Likewise the team must address what it is that makes them uniquely qualified to succeed. Does the team have proprietary (and protectable) technology, management talent and experience that competitors do not, long-term strategic partners? According to Growthink president, Dave Lavinsky, "Management teams must prove to investors why they are unique and why they will succeed. They can't just state how wonderful they are - they need to prove it through detailing past successes and unique qualifications."

A business plan that fails to address the "Why You, Why Now" question, is most likely a business plan that will remain in the stack of "not now" business plans. Business plans must present a compelling argument as to why the investor should invest and in our fast-paced world with unbelievable opportunities and opportunity costs, why investors should invest now.

About The Author

Dave Lavinsky

Since its inception, Growthink has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. Growthink has become the firm of choice for venture capital firms, angel investors, corporations and entrepreneurs in the know. For more information please visit http://www.growthink.com.

dave@growthink.com

Purchase Order Financing Overview

Fri, 05 Sep 2008 04:22:10 +0000

Purchase Order Financing Overview

by: David Springer

Knowing the ends and outs of purchase order financing is an asset to almost any small or medium sized business owner. In the sections below you will learn just exactly what purchase order financing is, the benefits, drawbacks, who can benefit the most from it, and would be likely to qualify for it.

What is purchase order financing?

Purchase order financing is another way to get a loan for the capital you need to finance the supplies, production, and shipping of a product after you have received a purchase order from a buyer. Once you produce the finished goods and are paid, you can then pay off your invoice to the company who provided you with funding.

This is a perfect solution for small start-up businesses who have orders coming in but don't have the finances required to order supplies, pay their workers, and ship the finished goods. This would also be a great opportunity for a small to medium sized businesses who have found themselves with a sudden large customer jump or are graced with a very large order.

Who can benefit from purchase order financing?

- Purchase order financing is great for small to medium sized businesses who usually do not have the funds for large orders that could sky rocket their sales and turn their product into a household name. Image pitching your product to a major retailer, receiving an order from them, and then not being able to produce the goods needed because you are short on funds. purchase order financing could save you from this heart-breaking, and business-breaking, blow.

- A company who has received an order so large that they would need a six-digit loan. A purchase order financing company is not there to finance every single order so that a business does not have to spend any money up-front, it is merely a means for businesses to get the funds they need for an order that would otherwise be out of their reach financially.

- Only those who are reselling an already made product that they have to purchase in order to send to the buyer, such as drop shippers, or are producing a product to sell may be eligible to receive purchase order financing. For example, if you are selling a service, you would not qualify to receive purchase order financing. Although it may take capital you do not have to hire employees to perform the service, it would still not qualify under most company guidelines.

What are the drawbacks of purchase order financing?

There are few drawbacks to receiving purchase order financing, however, there is one major qualification that could potentially stand in your way. When a company grants you funding, they assume they will be paid after your customer receives the finished product and pays you. Because of this, many funding companies will check the credit of your buyer(s) to be sure that you will not get ripped off and be left without the money to pay your invoice. Purchase order financing companies are not only taking a chance on you, they are taking a chance on your customers as well. They are the ones with the real risk if the deal goes sour. Knowing that your customer is credit worthy gives the company the peace of mind to lend to you.

What to look for in a purchase order financing company

You should find a company that is right for you. These guidelines may help you better understand what type of company you should apply with:

- Find out what their minimum and maximum funding guidelines are to ensure that they meet your financial need. If a company only funds loans that are in excess of what you are looking for or has restrictions that are less than what you need then you are best moving on to another company.

- Find out what other eligibility requirements they have to ensure that you do qualify under their guidelines before you waste any time applying for their loan.

- Find out what length of time you have to repay the loan and check to see if it meets with you production and billing schedules to ensure that you will have the funds in time.

- Once you have found a company that works for you, make sure that they have a fee or interest rate that your company can both afford and be comfortable with.

In the world of loans and financing, purchase order financing may be a small business's best ally. They will usually have repayment terms that allow time for production of a product and it is the fastest way to receive financing without losing any investment in your business. Also, since they will check into the credit worthiness of your buyers, they may save you from producing a product for a deadbeat buyer. All in all, purchase order financing is a way to finance a large order that may get your product into the hands of a top notch retailer.

About The Author

David Springer is a consultant for Sovereign Funding Group (www.sovereignfunding.com). Sovereign Funding Group is an experienced, reputable company that offers convenient, no-risk services to help you with the selling of your deferred payments and business financing.

5 Ways Poor Credit Scores Costs You Extra Money

Fri, 05 Sep 2008 02:58:41 +0000

5 Ways Poor Credit Scores Costs You Extra Money

by: Jeanette Joy Fisher

Most of us want a good credit report to obtain automobile financing, credit cards, and to purchase a home. But, beyond these consumer loans, your credit report can cost you in everyday living expenses. What you don't know about your credit could be costing you money.

Having a credit card means that you can order tickets, rent a car, and reserve hotel rooms. Besides these conveniences, your credit report can mean that you must pay higher deposits and fees for everyday services.

Did you know that your credit history can keep you from getting utility connections, good telephone rates, the best auto insurance, home owner's insurance, or even keep you from getting hired?

1. Some utility companies set minimum standards for service connections. If your report shows collection accounts for prior utility bills, you may not be eligible for service at all. And if utility companies do agree to connect your service, you'll need to pay a higher deposit than another customer with good credit who may not need to make any deposit.

2. The same requirements exist for telephone services. People with a good credit history don't need to pay deposits for home telephone or cell phone services. When we first got a cell phone with poor credit scores, we had to pay a $300 deposit, for one cell phone. After fixing our credit, we got eight cell phones for our business, with zero deposits.

3. What many people don't realize is that good credit enables them to get better insurance rates. High-quality, low-cost home owners? insurance, auto, and life insurance companies set minimum credit standards for their policy holders; this means that consumers with poor credit have to pay more for less coverage. Many automobile insurance companies now base your monthly premiums on your credit score; these companies offer a 17% discount if your score is over 625 and a 25% discount if your score is over 725. Why? Because according to their studies, people who are careful with their credit are also careful with their property and careful drivers.

4. Bad credit can cost you a job. More and more employers run an applicant?s credit report and hire the person with better credit, assuming that better credit equals better integrity and character. A friend of mine with a Master's Degree and a 4.0 grade average did not get hired; she was told her credit score didn't meet their minimum standard and that they hired another person with less education.

5. Poor credit scores means you pay more for your home financing. Mortgages cost more in upfront fees and interest rates for those with low credit scores. How much can you save? A mortgage loan of $150,000, 30-year, fixed-rate mortgage, interest rate of about 5.72 percent costs around $870 a month; poor credit scores raise the interest rate over 9 percent and the payments over $1,200. As you see from these payment differences, good credit means that you can finance a more expensive house with the same income, or save $330 each month.

Boost your credit score so you can save money on everyday expenses, get high-quality insurance, and the best mortgage financing.

About The Author

Jeanette Joy Fisher

FREE Credit Help Teleseminar. Get expert advice on building your credit from credit and real estate college instructor Jeanette Fisher (www.jeanettefisher.com). More free credit card debt help and FREE Credit Tips ebook http://worryfreecredit.com.