THE ANDROMEDA EFFECT
I’ve heard it and I know you have, pretty people always seem to get a break.
I want to believe the opposite is true, but sadly, ugly people are screwed out of some perks just for being, well, ugly.
THE SKINNY (NO PUN INTENDED)
EVERY experience I’ve had during a traffic stop, no matter my disposition, is tense and I’m approached as if the stop sign or turn signal I omitted meant something personal to the officer.
My omission is followed by a ticketing to warning ratio of several to none. Even after ticketing, I am remanded again, “watch your driving, ya hear?”
My girlfriend on the other hand, fits the Andromeda mold.
She seems immune to the ills of the ticketed masses.
In fact, these “confrontations” become more of a social delay, and result in the officer giving helpful tidbits, and a warning that almost seems care more about her safety from other driver’s careless habits.
Why the score matters
If you want to join the ranks of the faceless ugly masses, try having a low FICO score.
In reality, it only takes a slightly blemished, neglected score to feel the pain of financial rejection.
Like the type of score that comes from not caring much about the facts, turning a blind eye–all while still paying the bills.
Really. I’m not kidding you.
You’ll be screwing yourself out of a ton of unseen perks, and out of your own hard earned cash. They won’t even have the gall or decency to say it to your face.
From credit approvals, to rates, to paying more for just about everything, a poor credit score keeps you down like nothing else financially.
The same product will cost you more. Period.
For example, a $20,000 car will set you back $21,248.95 at 48 months and 4 percent.
The same at 12%? $25,280. That’s a $4,000 difference on the exact same $20,000 car, all because your credit has a mullet.
For a house? It gets downright ludicrous. A 200,000 house, financed for 30 years.
Pretty FICO: 3% interest, pays 103,554.90 in interest alone.
Ugly FICO: 6% interest (good luck even getting that), pays 231,676.38 in interest alone.
That’s 128,000 more in interest!!
Same house, same time. Ugly credit. Pay twice the interest.
Again, this isn’t even looking at really ugly, or even kind of ugly credit either.
It’s looking at slightly blemished credit. If that doesn’t scare you, it should.
You can extend this scenario to everything purchased on credit. That should shock you… even more than looking into the mirror each morning.
With a moderate interest credit card, say 15%, making the minimum payment, you can expect your original balance to DOUBLE in as little as 3-5 years. Still reading?
The good news, your FICO can be sexy… and they said you can’t fix ugly!
NOW, THE IMPORTANT STUFF
WHAT DO THE NUMBERS MEAN?
Exceptional, less than 1% of people in this range are likely to be seriously delinquent on payments in the future.
These people are WELL ABOVE the average US consumer’s score, and will experience easy access to credit, and RECEIVE THE BEST RATES from lenders.
Very Good, approximately less than 2% of people in this range are likely to be seriously delinquent on payments in the future.
These people are ABOVE the average US consumer’s score, and will experience relatively easy access to credit, and MAY QUALIFY FOR BETTER RATES from lenders.
Good, approximately 8% of people in this range are likely to be seriously delinquent on payments in the future.
These people represent the MEDIAN US consumer’s score, and will experience decent access to credit, and are considered “ACCEPTABLE BORROWERS” by lenders.
Fair, approximately 27% of people in this range are likely to be seriously delinquent on payments in the future.
These people are BELOW the average US consumer’s score. They are considered SUBPRIME borrowers, and obtaining credit may be DIFFICULT. If these borrowers are approved for a loan, IT WILL BE AT A MUCH HIGHER RATE.
579 and below
POOR, approximately 61% of people in this range are likely to be seriously delinquent on payments in the future.
This is considered poor credit. Most applications for credit will be DENIED. If you are approved for a credit card, it is likely to require a FEE and/or DEPOSIT. A score this low is usually a result of bankruptcy or other major credit problems.
WHAT AFFECTS YOUR SCORE?
35% – Payment History
30% – Amounts owed on credit and debt
15% – Length of Credit History (Don’t close old accounts!)
10% – New Credit (Don’t open new accounts!)
10% – Types of Credit Used.
WHAT DOESN’T AFFECT YOUR SCORE?
Income, length of employment, alimony or child support payments.
It’s time to check your credit score, make sure it’s accurate, find out how your financial picture is affecting your score, and more importantly, IMPROVE them. 85% of reports contain errors.
Make sure you’re monitoring your credit score and report with at least as much concern as you watch your weight, and then you’ll truly be looking out for number one.