Learn About The Three Startling Benefits Of Credit Repair

By Dorothy A Taylor

When an person tries to get a loan for a house or a loan on an car they are usually aware of how significant their credit report and credit score can be. A lender can charge a higher rate or even reject credit altogether based upon what is showing on the credit report and the credit score.

Still there are also a few other things that most individuals are not even attentive of relating to credit reports and credit scores. Negative credit can affect you in a few unpredicted ways.

One chief reason to try to keep your credit clean and your score high is if you own any credit cards. A credit card company will often use any justification they can to boost your interest rates. They can essentially continue to monitor your report at anytime after you become a cardholder and even if you have never been late on a payment to them if they see that you have had problems with other lenders they can raise your rates. It is probable that they could double or triple your initial rates.

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

Credit scores and reports can also influence your job search. Prospective employers can ask to see a copy of your credit report as part of a background check. It is permissible for them not to hire you if you have bad credit. However, be aware that they must have individual consent granted from you to query into your credit.

If you have excellent credit it may mean the difference between getting hired or not if you are one of a few similarly competent prospects. If you have bad credit they may not even consider you. In these changing economic times it is imperative to preserve any benefit you may have in the job market.

The third unforeseen advantage 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 investigation, they have determined that people with bad credit submit 40% of all claims. For that motive if you have bad credit they may judge 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 many of these things seem biased and unfair the fact is that our credit affects more than we recognize. Do what you can to preserve good credit if you have it and if you don't take the steps necessary to improve or repair your credit. - 31382

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