Credit repair can help consumers negotiate interest rates

Having a good credit report can help consumers save hundreds of dollars a year by reducing the interest rates they receive on loans, credit cards and insurance policies. In addition, those who improve their credit can often lobby to have their current rates reduced.

However, many consumers deny themselves this ability by not checking their credit reports, and allowing questionable errors to drag down their scores.

The average credit card rate is now 14 percent, according to CBS' The Early Show. Despite this, many cardholders could be paying rates as high as 20 to 50 percent, even though their credit actually qualifies them for lower monthly payments.

Consumers who find questionable items on their reports should contact a credit lawyer, as these professionals can help individuals investigate disputes and repair bad credit by working with the three major credit bureaus.

By improving their credit score, individuals will gain a new bargaining chip with their current lenders. They may also have an easier time lowering their interest rates on new loans and be able to increase their monthly savings.