As a rule individuals are aware of how key it is to have a excellent credit score and a clean credit report when they go to acquire a loan for a house or an automobile. Lenders place a high value on credit and they can either charge you a higher interest rate or even decline your request outright based upon these scores and reports.
But there are also a few things that most people are not even aware of about credit scores and credit reports. Negative credit can have an consequence on many things that you may not even be aware of.
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 pretext they can to raise your interest rates. They can in reality 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 troubles with other lenders they can raise your rates. It is probable that they could double or triple your initial rates.
Any mark that shows on your report is an enough basis for a credit card company to increase your rates. If the information is flawed or mistaken it is irrelevant to them and they will still unjustly raise your rates. For this reason it is wise to take advantage of credit repair strategies to delete mistaken and wrong credit.
Your credit score and your credit report can also affect a job search. A prospective employer can do a credit inquiry as part of a credentials check with your go-ahead. It is lawful for them not to employ you based on your credit. They must have special authorization to gain access to your credit history though.
If you are one of a few equally qualified prospects it is likely that your credit rating could become a deciding reason. In these times of financial mayhem it is necessary to make sure that you preserve each advantage you may have in the job market.
The third unexpected 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 investigation, they have determined that people with bad credit submit 40% of all claims. For that reason if you have bad credit they may consider 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 unreasonable and unfair the fact is that our credit affects more than we recognize. Do what you can to maintain good credit if you have it and if you don't take the steps required to improve or repair your credit.
But there are also a few things that most people are not even aware of about credit scores and credit reports. Negative credit can have an consequence on many things that you may not even be aware of.
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 pretext they can to raise your interest rates. They can in reality 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 troubles with other lenders they can raise your rates. It is probable that they could double or triple your initial rates.
Any mark that shows on your report is an enough basis for a credit card company to increase your rates. If the information is flawed or mistaken it is irrelevant to them and they will still unjustly raise your rates. For this reason it is wise to take advantage of credit repair strategies to delete mistaken and wrong credit.
Your credit score and your credit report can also affect a job search. A prospective employer can do a credit inquiry as part of a credentials check with your go-ahead. It is lawful for them not to employ you based on your credit. They must have special authorization to gain access to your credit history though.
If you are one of a few equally qualified prospects it is likely that your credit rating could become a deciding reason. In these times of financial mayhem it is necessary to make sure that you preserve each advantage you may have in the job market.
The third unexpected 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 investigation, they have determined that people with bad credit submit 40% of all claims. For that reason if you have bad credit they may consider 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 unreasonable and unfair the fact is that our credit affects more than we recognize. Do what you can to maintain good credit if you have it and if you don't take the steps required to improve or repair your credit.
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