2019 Idaho Real Estate Blog

What Your Low Credit Score Costs You Main Boise Home Loans
In the past, a lower credit score simply meant that you would pay a higher rate of interest on a car loan or wouldn't qualify for a mortgage. And while that is still the case, there are much broader ramifications for having poor credit. When your scores are low, you will pay more for EVERYTHING!


Dear Reader:

It is utterly amazing to me at how much the general public DOES NOT UNDERSTAND about credit scores and how they are calculated. But even more dangerous to them is that they don't know the true scope and true cost of poor credit. Outside of the home mortgage ramifications (which will be in the next post), here are some other important ways that low credit scores hit consumers in the wallet.

EMPLOYMENT OPPORTUNITIES -- I work for a bank, and believe me...I WOULD NOT have this job if I didn't have good credit. My bank, as well as many other lending facilities, government employers, insurance companies, and accounting firms...WILL NOT hire you if you have poor credit. You can be the most qualified and likable person in the resume stack. So sad, too bad.

AUTO LOANS -- Have you seen the ads on TV? You know, the ones that say you will pay 0% or 1.9% interest with no money down? If you saw something like that, you may not have read the itsy bitsy fine print at the bottom of your TV that says something like, "This offer is predicated upon borrower having exceptional credit."

STUDENT LOANS -- With college tuition inflation seemingly out of control, parents and college students most often turn to student loans to fund higher education. Sometimes, parents will try to make up the difference with a Home Equity Line of Credit (HELOC), but if your credit scores are lower, getting a HELOC will probably be impossible.

ENTREPRENEUR -- Want to start your own business? Even if you have the best thought-out business plan and available target market to start, lenders will be skittish about lending to you if your scores are low.

CREDIT CARDS -- Have low scores? In this "New World" of credit crunches and subprime collapses, prepare to be denied or pay interest in excess of 20% (minimum) for a credit card.

CHECKING ACCOUNTS -- If you have non-sufficient funds records filed against you, many banks will to open checking accounts for you. Try to live in this world when you have to pay cash for everything you do!

RENTING -- I am a landlord, and believe me...I like it when the rent check clears and I get paid. I personally check the credit of my tenants, and WILL NOT rent to someone with a credit score of less than 650 for any reason. And no, I am not the exception to the rule.

INSURANCE RATES -- Many auto insurance companies will use your credit score to "risk price"  your payments and payment schedules.

RETIREMENT -- If you are paying so much more for everything I have outlined above because of your poor credit, I would bet that retirement savings are not happening for you. Most people with poor credit simply do not make enough money to pay the higher costs of everything in this list AND save for a comfortable retirement. What will you do when you do not have retirement savings and Social Security is not around when you think of hanging up the working life for good?

If you are interested in talking more about this post or a specific credit scoring issue you have or know about, feel free to call me at (208) 880-0316, or email me at You can also visit my website at

Best Regards,

Eric Leigh, Mortgage Consultant
2965 E. Tarpon Drive, Ste. 150
Meridian, ID 83642
(208) 880-0316


Posted by Eric Leigh at 2/6/2009 11:46:00 AM
Comments (2)
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offe?ed for me right here right now. Wonderful job on being informative within your blog and presenting
facts t? the reader. ? appreciate this a lot!
Thank you!
I dont c?mmonly stu?y blogs on these sub?ects but
I re?uired some ?etails that was offered for me right here right now.
Wonde?ful j?b on being informative within your
blog and presenting facts to the rea?er. I a?preciate
th?s a lot! Thank you!
Posted by on 12/17/2013 4:06 PM
Re:What Your Low Credit Score Costs get HELP HERE
Today, my TransUnion new score is 775 out of a possible 850; my Vantage score is 990 out of 990; my auto score is 905 out of 950; and my home score is 912 out of 950. All scores computed from the same database on the same day. Why the variances? Use of different algorithms. Who controls the algorithms? The rating agencies..What can you do about it----nothing! I filed a complaint against the rating agencies in 2010 to the FTC, and to date, they have acknowledged receipt
but have not responded..They are not going to respond. The rating agencies run wild.I don't need new credit. I am 73 years old, and have assets. However, I do pay auto and home insurance each year and not having my home and auto scores maxed-out affects what I pay for home and auto insurance each year. Probably costs me several hundred dollars for my private residence and rentals.
I repeat, the credit rating agencies have more power over your financial life than you can imagine, and they report to no one. Not one government agency will get involved in the algorithms used by rating agencies. It's their call. Not even the new Consumer Protection Agency will touch this subject. I know. I tried to get them involved but got disappointed..As usual no response..I was able to put a full stop to through the help of a young man and now my scores are what I want it to be..He's honest and very intelligent..The way he worked it all out I have no idea but he did..You should contact him today he will help change your life..hackhempATgmailDOTcom.
Posted by on 7/6/2017 6:10 AM
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