If You Have Bad Credit, Beware of the Additional Costs of Monthly Bills
You probably already know that your credit history can affect things like mortgage approval, loan interest rates, and so on. Unfortunately, bad credit can also mean higher monthly bills. If your credit is small, you should beware of “risk-based pricing”.
In a recent report, the FTC explained:
When you apply for things like cable or satellite TV, mobile phone services, or internet services, the company can check your credit report. They may use information from your credit report to provide you with less favorable terms, meaning they may charge you more for a service than anyone with a better credit history. This is called risk-based pricing. The law says it’s okay for a company to let you know by sending you a risk-based pricing notice.
They mention that Sprint recently had problems with this due to charging customers with bad credit a $ 7.99 monthly fee without sending them any notification. The FTC suggests checking your account to see if any of these fees are included. Of course, you should also check your credit report regularly for errors. If there are errors, take the necessary steps to challenge them.
For more information, follow the links below.
Note: How Your Credit History Can Affect Your Monthly Score | FTC via MoneyTalksNews