Most people don't realize the importance of their credit report. This information can help get you a job or be denied for a job. Your credit determines how much you will pay for car insurance. It contains all kinds of valuable information such as: credit accounts loans, bankruptcies, late payments and a list of all your creditors for the past seven years. It also has your social security number, birthdate, current address and previous addresses of where you lived for the past 10 years. Pure and simple, this is your financial identity to the world.
Your credit determines how much money you can get and at what interest rate. If you have great credit, you can get just about anything with your signature if your income will support paying for such an item. If you have bad credit, you will have little if any luck in borrowing money from anyone that runs a credit check. The more money you want to borrow, the more stringent requirements will be to loan you the money.
When applying as a first time buyer for a home mortgage, all lenders will check your credit history. The higher your credit score, the lower the rate of interest and the better the terms. If you have poor credit, you're always going to pay a higher interest rate because the lender is at greater risk of not being paid back.
There are many ways to get your credit score up. Pay your bills on a timely basis within the terms of the agreement and keep a watchful eye on your credit report. Watch out for errors on your credit. When you find such errors, dispute them immediately and have been removed. Make sure there is not any fraudulent activity or identity theft going on with your account. This can severely damage your reputation and can take years to resolve. Another way is credit repair. You can either hire in a professional to cleanup your credit or you can purchase a credit repair package that will guide you in cleaning up your own credit. Be cautious and find a reputable credit repair agency with a great reputation. Don't hire a fly by night, there are plenty of them.
In the beginning of this article, I mentioned how your credit can cause you to be denied a job. It is very important to make an effort to keep your credit score as high as possible so you will never be denied a job. My understanding is, employers are using credit to screen applicants more and more.
Another area that will cause your payments to increase is car insurance. If you have poor credit you will pay a much higher premium for car insurance. It doesn't matter if you haven't had an accident for many years, you will be treated as a higher risk for the insurance company. This also holds true for homeowners insurance as well. I don't agree with this, but that is the way it is.
So now you can see how essential it is to keep your financial reputation clean and in a favorable condition. So, do everything you can to take care of all financial obligations on time. I wish you the best.