Bad credit scores equate to higher interest rates on credit cards. Most of us already know that, but here's something interesting that I didn't know -- your auto insurance premiums are also tied to your credit rating.
This happened to a friend of a friend of a friend --- but I did some research and discovered it could actually happen. Here's the story: "Bob" has pretty bad credit, but a great driving record. "Sam" has great credit, but a spotty driving record (DUI and several speeding tickets). Bob and Sam are both 33, drive the same car, work at the same company, and are roommates.
Bob, the great driver, pays triple what Sam, the not-so-great driver, pays in monthly insurance premiums. As if higher interest rates and fees weren't enough, now there's one more reason to add to the list of reasons it pays to keep up-to-date with your payments.
Original source: http://budgetblogger.wordpress.com/?p=64
