It's no secret; having a good credit score has many benefits. It can help you get approved for loan and get lower interest rates, but there's even more. News 13's Jeff Platt shows us an unexpected way good credit can save you big money.
Homeowners and homebuyers alike have a lot to worry about; making mortgage payments, keeping the house clean and the yard trimmed, and on top of that they need to buy insurance.
Cheryl Gillum, direct at the Wyoming Community Development Authority said, "All of WCDA's loans require that a homebuyer have homeowners insurance and that's part of their house payment."
For those financing homes the cost of an insurance policy could be high, but if all of their other accounts are squared away... It's the policy buyer who gets the break.
Des Bennion, The Bon Insurance Agency said, "Insurance companies can't really go against you for bad credit, but we can give discounts for good credit."
Good credit shows companies a person can be trusted with financial obligations, but building a solid credit score can take quite some time. So the sooner you start using a credit card, the less you'll have to pay to protect a house and the reward for having a high credit score isn't just a few bucks.
Bennion said, "They can be extremely enormous. Probably the biggest one that I've seen was a difference of about 600 dollars on an annual premium."
On the other side of the coin having poor credit doesn't only result in higher premiums; the cost can be even greater.
Bennion said, "Sometimes even worse than that we've had a few clients sadly that the home policy cancels and then there's a loss."
Bottom line when you pay your bills on time you come out smelling like roses.
Although Bennion emphasizes the importance of building credit early in life. He also says it's important to never use a credit card to buy anything you can't afford.
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Szerlip & Co look to provide information on various aspects of insurance to secure your home, auto or business. Call today at 973-467-0400 to speak to one of our home insurance professionals or email us your questions.