 Credit card, loan,
and mortgage payments are not the only things being reported to the major
credit bureaus. Verizon, like other utility related companies, reports
your payment history to the credit bureaus as well. Your credit report and score are affected by payment history, amount owed, length of credit history, amount of new credit, and types of credit used. Your good credit rating is essential for things like getting lower interest rates, getting better insurance rates, and even getting a new job. In a phone call I had with State Farm recently they confirmed that for new policies such as home owner insurance or adding another car to your policy they will check your credit rating. That credit rating is part of the overall risk assessment they make which dictates a rate for you as an individual policy holder. Two people can buy the exact same policy, but pay two different prices. Parts of your credit report that insurance companies will look at are the number of revolving accounts that are closing in on the maximum limits, late payments, and any collections activity. They do not use information like delinquent “life necessity” debts such as medical or utility bills. Maintaining timely payments on loans is important, but don’t forget to stay current on all your other obligations as well. This includes your taxes! Tax liens are one of the stickiest negatives you can have on a credit report. For example, there are municipalities that do not report your delinquent taxes to a credit bureau, however, that doesn’t stop them from taking legal action seeking a lien. If they do proceed with acquiring a lien it will be appear on your credit report and have a negative impact on your score. What do you think? Leave a comment here! For more consumer news visit the Consumer News Archive. Also, readers are always welcome to join me at LinkedIn! |