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Low Credit Score May Hurt Car Insurance Rates, But Consumers Have Options
(PRWeb) July 6, 2007 -- MortgageCreditProblems.com, a primary source of mortgage lending information and bad credit mortgage loans for people with poor credit, can help people who are hurt by a bad credit rating (http://www.mortgagecreditproblems.com). Consumers are hurt by low credit scores in many ways--including, surprisingly, the cost of auto insurance -- so it's important to have the best credit rating possible.
According to the Federal Trade Commission, "Potential lenders use your credit score to help predict whether you are a good risk to repay a loan and make payments on time." People seeking a home or car loan who have a low credit score will have difficulty finding a lender. The reasoning seems logical -- although about half of all credit reports contain errors.
But a low credit score can unexpectedly affect other areas of life, too. The insurance industry has found a surprising -- but, it believes, solid -- statistical correlation between credit ratings and auto mishaps. Auto insurance companies use credit scores to determine whether to charge higher or lower rates for auto insurance. People with low credit scores pay more for auto insurance than people with higher scores because statistics suggest they may be bigger insurance risks.
Whether or not the sanctions against low credit scores are logical or fair, MortgageCreditProblems.com reminds consumers that they do have options.
? The Fair Credit Reporting Act gives consumers the right to learn their credit rating, find out how much the rating affects their insurance rates and then shop for the best loan and insurance deals. ? A number of top lenders are willing to give credit to borrowers with low credit scores. ? There are many ways for consumers to improve their credit and clean up credit scores. (http://www.mortgagecreditproblems.com/mortgages_badcredit/mortgages_badcredit1.htm)
MortgageCreditProblems.com links borrowers to willing lenders and credit counselors, and offers articles on ways to improve credit scores.
MortgageCreditProblems.com is a primary source of mortgage lending information for people with poor credit history or a low credit score. MortgageCreditProblems.com connects borrowers with bad credit to lenders that are willing to give them credit despite their credit history and also offers articles on improving credit scores, refinancing with bad credit and debt consolidation.
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This press release has been reprinted from PRWEB per the terms and conditions of the copyright notice.
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