During an interview done recently with Kenneth Jeanes from Boardwalk Insurance Group he pointed out the importance of credit when it comes to buying homes and insurance. This is something which many students should pay attention to. Many students that are currently graduating from college are getting great jobs all around the nation and looking to purchase their first homes. Whether it be a house in Houston or a condo in New York, the things that bank will first look for are your credit, and the amount you can put up front for a down payment. “I do not think most people realize there is now a credit score for your insurance,” is one of the things he stated during the interview. You can read the whole interview with Kenneth Jeanes here.
A down payment is something that people are able to find, either through savings, friends or family. Unfortunately if credit is not as good as it should be, it can be a problem purchasing your home and getting insurance later due to how to rates may differ as pointed out by Mr. Jeanes “As with a lot of other things in life, your credit can help or hurt you getting the best insurance rate.”
Sometimes, due to the high amount of student loans, and credit card debt that some colleges students rack up, it can be difficult to handle finances properly while maintaining a good credit score. However, it is important for students to realize how crucial it is to keep their credit scores well taken care of. Not only does credit score affect buying a house or a car, but now it also affects whether or not the person can be qualified for certain types of insurance. For example, if a person has a small down payment, but great credit, then the person can get lower interest rates which would result in long term savings. Whereas a person may have a large down payment, but bad credit and end up paying high interest rates which would cost them greatly in the long run. A person with a good down payment and good credit, can benefit with low overall payments and long term savings.
There are quite a few ways to keep your credit score high, to ensure you don’t have problems even before you buy a house. For example, when you lease an apartment in college, your electric company at times will run your credit. So if you are able to make all of your utility and rent payments, you will gain good points on your credit score. Also for students that like to shop or those that drive a lot. A credit card can be made and used just for gas and bills, or one can be made with different clothing companies such as Macy’s and Express. This limits where the students use their credit cards so they can manage their finances and keep their balances low.
As advised by Kenneth Jeanes from Boardwalk Insurance Group, insurance companies do at times check credit. So even later when a student gets their great salary and wants to buy that exotic car, exotic car insurance rates will depend greatly on peoples credit score. Since exotic car insurance is of a higher quality insurance companies need to know your credit standing. So whether it by exotic car insurance or a home purchase, remember that good credit can go a long way.