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The Other Perks of Having a Clean Credit Report

By Ruth Racey
Published: Sunday, September 20th, 2009

The most obvious reason for keeping a credit record clean is to have a chance of being extended credit and loan options. For many Americans, having a good credit history means getting a better opportunity to apply for car loans, mortgages, and even new credit cards. Maintaining a clean credit report would also entail a better chance of being given better credit options by banks and card companies.

Having a relatively flawless credit record can also qualify a consumer for low interest loans. Refinancing home and auto loans can also become much easier with a good credit history.

However, there are also lesser known benefits of a clean credit report. A good credit record does not only mean a creating a better impression for card issuers and lenders. It also means getting other perks and benefits.

With the economic slowdown, companies are cutting back on hiring too many employees. Because of these, there are more jobseekers vying for fewer job positions. This makes competition among applicants very intense. Companies looking for new employees have also become more stringent with their selection process.

In order to maximize their employees’ potential, companies prefer applicants that have good credit histories. For them, a clean credit report would indicate that a job applicant is responsible enough to take care of his or her financial health. Employees that have good credit histories are also less prone to suffer stress and will be more productive.

Because of this, most companies actually investigate the credit health of their applicants. Firms favor jobseekers that have clean credit reports over those that they may consider as potential liabilities. Poor credit ratings can also indicate that an applicant may not be trustworthy or dependable. These telltale signs can warn employers of potential problems if they decide to hire an applicant with less than perfect credit reports.

Credit card companies also like to keep tabs on a cardholder’s credit reports. Card issuers do not only refer to late or missed payments to slap higher interest rates. They often consider a client’s credit score to determine if they have to raise interest. Maintaining a clean report can mean rock-steady low interest rates.

Car insurance companies also prefer to take a look at credit reports before even considering issuing insurance. Statistics indicate that Americans with poor credit scores usually file more insurance claims than car owners with clean records. Because of this, insurance providers are more likely to slap high premiums on a driver with bad credit reports.

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