Credit Repair And Three Unexpected Benefits

By Roberto Riley

Most individuals understand how necessary it is to have a good credit report and a high credit score when they try to get a mortgage for a house or an automobile. Lenders take the credit information very seriously and they can charge a higher interest rate or even reject credit altogether based on the information from the credit report and credit score.

Nevertheless there are also some additional and lesser-known benefits to having a good score and a clean report. These are things that most individuals are perhaps not even conscious of.

If you are a credit cardholder you need to make sure that you keep a good credit score and a clean credit report. Credit card companies are infamous for finding any motivation that they can to augment your interest rates. If you are a cardholder they can keep an eye on your report and if you show any damaging credit they can jack up your rates, even if you have never been late on a payment to them! The teaser initial rate could double or even triple if your credit report is awful.

Any damage showing on your credit could change the rates you are paying on your cards. If these problems are untrue or inexact they can still affect your interest rates so it is shrewd to try to repair any problems that you can.

Your credit score and your credit report can also affect a job search. A likely employer can do a credit inquiry as part of a qualifications check with your go-ahead. It is legal for them not to hire you based on your credit. They must have special authorization to access your credit history however.

If you have excellent credit it may mean the distinction between getting hired or not if you are one of a few equally qualified prospects. If you have bad credit they may not even consider you. In these changing monetary times it is notable to continue any benefit you may have in the job market.

The third unpredicted benefit for repairing your credit and making it look as good as possible is that insurance companies can turn you down for coverage if you have bad credit. According to insurance industry research, they have determined that people with bad credit submit 40% of all claims. For that reason if you have bad credit they may believe you to be high risk and they may deny you coverage. Figures show that as many as 90% of all automobile insurance companies use credit reports for an underwriting tool.

While these things may not seem equitable or fair the fact is that your credit report can affect all of these things and more. If you have good credit, do what you can to keep it that way and if you don't, you can take actions that can help you improve or repair your credit.

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