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5 Reasons One Should Go For Credit Repair

By Janet Lacey
Published: Thursday, November 26th, 2009

Most people live under the impression that while a bad credit score may prove to be a hindrance when you want a new credit card or a loan, it does not influence any other area of life. However, this is absolutely not true. While a bad credit score will definitely make getting a loan or a new credit card tough, it will also have a negative impact on many other pertinent areas in a person’s life. 

If you feel that credit repair is not for you, then take a look at some of the main reasons why you should consider credit repair even if you do not want to apply for a new line of credit. 

  1. To Get A New Job Or A Promotion: Unlikely as it may sound, a large number of employers will check your credit report before they take the decision to hire you. Showing irresponsibility when dealing with credit may be a sign that you will be an irresponsible employee as well. In fact, even your old company may pass you for a promotion if they see your credit score deteriorating continuously. 
  2. Save Money: When you have bad credit, you end up paying more for a number of services and financing options, which further digs your bad credit hole deeper. Most companies nowadays will offer you a mortgage or a credit card even if you have bad credit, but the rates on these cards will be so high that you will end up paying through your nose. In fact, even your old credit card company may suddenly increase the APR on your card if it notices that your credit score has reduced from what it earlier was. On the other hand, if you have a credit score above 720, you can end up a lot of money that you will otherwise pay as interest on your bad credit financing options. 
  3. To Prevent Paying Deposits And Extras: Whenever you apply for a new phone or utility connection, the company in question will check your credit report before extending their services. Based on your credit score, these companies may or may not charge you a security deposit. Needless to say, having good credit is proof that you make your payments on time, which will make the utility company provide you its services without taking an initial deposit. 
  4. Get A House: While it is a given that having bad credit will lead to problems when you want a mortgage for buying a house, most people do not know that a poor credit score may also keep you from renting one. Landlords are known to check your credit report for delinquencies and late payments before they sign a lease because a good credit score shows a high probability of the tenant paying his or her rent on time. 
  5. Pay Lower Insurance Premiums: Unlikely as it may sound, many insurance companies nowadays will decide your insurance premium based upon your credit report and score.  So if you have bad credit you will end up paying more for health, auto, life or home insurance than you would have to if you had a good credit score.

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