I ran across this article that talked about insurers using credit scores for premiums. Now, I vaguely remember my previous car insurer running a credit check on me when I got car insurance. However, it never really occurred to me that bad credit could raise my premiums.
Can you imagine getting that new Expedition and being denied insurance because of your credit score? As if a $500 car payment wasn’t bad enough, now you have to worry about higher premiums because of a lower credit score? Oh, and in case you haven’t heard, some electric companies are starting to report to credit bureaus also. Now I don’t know about you, but its not unusual for me to be late with a utility bill or two. It’s not that I don’t have the money in my account, I just forget to pay the bill. Better believe that I’m going stay on top of this now.
Personally, I think all of this is really hurting minorities. Historically, Blacks and Hispanics have lower credit scores. The fact that utility companies are starting to report your paying habits to credit bureaus will only make it worse. Today is definitely the day to start getting your finances in order. There is plenty of free information out there to help you get started. A couple of sites that I like are Black Enterprise and I Will Teach You To Be Rich. Also, check out your public library. In today’s world, reading and finances are fundamental.