Search:

Home | Finance | Credit

3 Additional Benefits to Maintaining a Good Credit Score

By: Stuart Hunter

Most people know the most obvious reason to have a clean credit report. Lenders heavily weigh your credit score when considering whether to approve an application for credit and at what rate. The worse your credit rating, the more likely in their eyes you are to default on a loan and the more they will have to charge in interest rates as a sort of "insurance" policy to make sure that as a lending institution, they continue to make money even when a few people don't pay off their debts.

Because having negative information on your credit file is the quickest way to damage your credit score, maintaining a clean credit report or working to clean a tarnished report is one of the best things you can do to raise your credit score and become a better candidate for low interest loans.

But that is only one benefit of having a clean credit report. Even if you have no intention of purchasing a new home, buying a car, or refinancing an existing loan, making sure your credit reports are as good as they can be still provides other perks.

Employers like a High Credit Rating

Credit reports aren't just used for credit anymore. Many employers today will want to take a look at your credit rating as a part of the application process. Before making a commitment on you, employers want to do their due diligence and for some, that investigation involves seeing how responsible you have been with your finances. Negative information on your credit reports could be an indication that you may not be trustworthy or dependable.

As a result, having a clean credit report may be another qualification you need to get that new job.

Credit Card Companies May Monitor Your Credit Reports

Even if you already have a low interest credit card, you should be careful to maintain a good credit score because that rate isn't necessarily set in stone. Many credit card agreements feature what is known as a "universal default" clause in which credit card companies reserve the right to bump up your interest rates if you are late on any payments, not just those to the credit card provider.

Come in thirty days late on your car payment and your credit card interest rate could double or triple as a result.

Your Auto Insurance Premiums Probably Take Your Credit Rating into Account

Most car insurance companies these days will want to see your credit score before they will be willing to issue you a policy. Their logic is simple. According to statistics, drivers with poor credit scores file more claims that people with good credit scores. As a result, car insurance providers may choose to deny consumers with low credit score or insist they pay higher premiums.

If you have a high credit score, however, this works I your favor because, as a lower risk client, auto insurance companies can get by with charging your lower premiums.

Article Source: http://www.bigfreearticles.com

Many people know that a high credit rating is helpful in getting approved for loans with the best rates and terms, but not everyone realizes how keeping clean credit reports plays a part in getting jobs, keeping credit card interest rates low, and minimizing auto insurance premiums.

About the Author:
Maintaining a clean credit score is something each person should strive for, but in some cases it is necessary to clean your credit reports of negative information that is already being recorded. Credit repair companies have helped thousands of people legally clean their credit score.

Tags: finance, credit, clean credit, clean credit report, clean up credit, clean my credit

Please Rate this Article

Comments

Share This Article - Quick and Easy Using This Button:

Click the XML Icon Above to Receive Credit Articles Via RSS!

Read More Articles From - Home | Finance | Credit

100 % Free Credit Report. Discover What It Really Says About Your Credit Status ! By: steve lobon - This special additionally includes a Free 7-day trial of a Triple Safeguard Credit Monitoring Service that sends you email alerts every time there is an query made to your credit file with each one of the three credit reporting agencies (i.e. Experian, Equifax, and TransUnion). On ordering the Free comprehensive credit report and credit score product, your credit card will be authorized to spend $14.95 which will be charged to your credit card at the conclusion of the Free 7- day trial.
Tags: finance, credit, free credit report, free credit report commercial, free credit report dot com
Get Out of Debt - Effective Strategies By: Daniel Akinson. - For some, getting out of debt requires more than just cutting back on the luxuries in life. If you consistently spend more than you earn or cannot make more than the minimum payment on your credit card, you are sinking ever deeper into debt. Here are your options to aid you in escaping debt: Stop saving and start paying. Many people continue to fund their retirement accounts even when in debt. This is a false economy. Most retirement plans pay 3-7% interest, while credit cards can charge upwards of 30% interest.
Tags: finance, credit
A Summary of the Asset Acceptance Collection Agency By: Samantha Taylor. - Because of the type of work that they do, collection agencies have a reputation all their own. Asset Acceptance Collection Agency (AACA), also known as Asset Acceptance Capital Corporation, is no different. AACA typically targets the primary, secondary and tertiary debt markets. In short, this means that AACA purchases overdue debt which one or more collection agencies have attempted to collect. According to an internet search, AACA's tertiary accounts make up approximately half of its portfolio. http://www.hoovers.com/company/Asset_Acceptance_Capital_Corp/rtjrhci-1.html. These accounts have already been through three collection agencies.
Tags: finance, credit, asset acceptance debt collection agency, asset acceptance debt, collection, collection agency, collection agencies
The Advantages With Credit Card Offers By: Alisdair Cosgrave - All across the world, people have been conducting for some time now, their financial dealings with credit cards, which have become a way of life. For any kind of purchase of services or products, these cards are used. One of the important reasons for the overwhelming number of people opting for these cards is a very simple one. The advantages of the credit card offers certainly over weigh the disadvantages. You can access financial resources, which would have been out of reach for you in normal circumstances.
Tags: finance, credit, credit cards, credit, personal finance
What is the President Obama Credit Card Debt Relief Program and How Can it Help You? By: Stacy Black - If you live in the United States it is more than likely that you have questions about the Obama credit card debt relief program. We have decided to write an article to help people understand the details of this program and how it can benefit you as an American debtor.
Tags: finance, credit, obama credit card debt relief, obama credit card debt relief program, credit card debt relief obama, obama's credit card debt relief, credit
7 Strategies Of The Surprisingly Saavy By: Fletcher Richardson - It's almost never about a economic downturn, it's about what we take from it. How has your perspective changed due to a recession or some other economic scenario? It really is easy to ascribe blame to "the economy", but perhaps we should take personal responsibility and blame ourselves. What are you doing to make sure your financial house is in order whether times are good or bad? What are you willing to give up today to secure a financially stable tomorrow?
Tags: finance, credit
What Does Bankruptcy Protection Mean? By: John Harris.. - Pursuant to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, consumers who arrange to file for bankruptcy coverage, with limited conditions, must get credit counseling from a government-approved institution within six months before they file. They also need to complete a debtor education study course from an approved provider to have their debt discharged. Bankruptcy is a court proceeding in a federal court where an insolvent debtor's assets are liquidated and the debtor is absolved of further liability. Chapter 7 deals with liquidation, while Chapter 13 deals with reorganization.
Tags: finance, credit, bankruptcy, debt, credit, law, legal
People Everywhere Are Looking For Government Grants By: Larry Jenkins - We all know that we have a new President, who is a Democrat, and this is a first in 8 years. Historically, Democrats are known for a willingness to fund social programs, and since Obama was known as a liberal senator, he probably won't be any different as President. If you are being challenged by the tough economy, and looking for ways to survive it, this may be the perfect time to consider looking into grant money.
Tags: finance, credit, credit, loans, personal finance
Credit Card Comparison: How To Learn By: Alisdair Cosgrave - The world of credit is a tricky place to navigate. Credit cards seem to be the magical solution to all of life's financial woes. Simply swipe the magic card and free money comes out! Except this is not how it works, the day always comes when you have to pay up. Unfortunately, many people do not realize this, and find themselves deep in debt. But credit cards are not evil, and there are ways to avoid these pitfalls. Simply learn about credit cards and the facts of credit card comparison.
Tags: finance, credit, credit cards, credit, personal finance, finance
Credit Repair Law: If Identity Theft Strikes By: Peter Williamson - Credit repair law is actually a very important issue just for almost all individuals to be aware of, particularly those who have already been victimized via identity theft. Identity theft is a crime in that one person or a gang of persons steal another person’s identification for their personal financial gain. They might get out loans in this person’s name and also steal significant data files off their particular personal pc. Identity theft is actually a terrifying criminal offense and even it happens all around the world.
Tags: finance, credit, identity theft, credit repair, credit repair law, identity theft strikes, via identity theft

BigFreeArticles.com is operated by MJE Sales, LLC.
Please signup

Share This Page:

	Print This Article
	Add To Favorites
	Email to Friends
	Ezine Ready

Learn More

Submit Articles

Member Login

Top Authors