Three more benefits of having a clean credit report
There are many benefits to having a clean credit report and high credit score, including some that are not known to all consumers. Most people realize that having a clean credit report is very important in today's society. Having a good credit score will help increase your odds of getting approved for loans - and being offered the best interest rates on those loans. It also allows you to obtain credit cards and credit lines at various businesses. But the benefits of a clean credit report go beyond applying for credit.
Your Credit Report is Important to Credit Card Companies
Having a high credit score and a clean credit report is essential to obtaining a credit card. It is also important to insure that you receive a low interest rate when you apply for your card. What you may not know is that your credit score and the information on your credit report continues to be important to the credit card companies long after you have begun using their card. Many credit card companies keep an eye on your credit report and are able to increase your interest rate based on any new negative information added to your credit reports while you are using their card.
Having a Good Credit Score Can Help You in the Job Hunt
When searching for a new job, you probably take time to spruce up your resume, set aside some nice clothes, and rehearse the interviews in your mind, but do you also make sure your credit is in order? Even if you are well qualified for a job, have plenty of experience, and interview well, a bad credit score could still stand between you and employment. Many employers will use the credit histories of applicants to help weed out potential problem candidates. A bad credit score is a warning sign that a person may not be responsible with their money and in turn a riskier person to have as an employee. So even if you are otherwise a good fit for a position, an employer may pass on you based on the information in your credit reports.
Lower Auto Insurance Premiums Based On Credit Score
According to the Insurance Information Institute, having a low credit score is correlated to having a higher chance of having to file a car insurance claim. So while your credit score and your driving ability may seem completely separate, most automobile insurance companies will in fact take your credit score into account when drafting your auto insurance policy. Even more, many car insurance companies use your credit score and credit report as a deciding factor in whether or not they will provide you insurance at all. The good news, however, is that it goes both ways. A good credit score likely means you will be charged lower than average insurance premiums.