4 Reasons You Should Repair Your Credit Now
Posted on November 16, 2010
It’s easy to put off credit repair, especially when you don’t really understand credit reports and credit scores. Maybe you’ve attempted credit repair before and it didn’t happen the way you thought it would. There are plenty of benefits to repairing your credit now, instead of waiting for another day.
Better interest rates on credit cards and loans.
When banks do your applications for credit cards and loans, they do a credit check to decide whether they should approve you. You might have known that bad credit would get you denied for credit cards and loans. Did you know that when you’re approved with bad credit you pay a higher interest rate than people with better credit? That higher interest rate means it costs more for you to borrow money. By repairing your credit and improving your credit score, you open the door for better interest rates and cheaper borrowing.
Fewer problems in your job search.
Employers are among the businesses that check your credit report before hiring you. Past credit problems like past due balances and collection accounts can place you in a bad light, especially if another candidate has better credit problems. Credit checks are common with financial jobs and top management positions, but employers are using them more for other positions. You’ll know if an employer is doing a credit check on you because they’re required to let you know upfront.
You can rent better apartments.
If you’re still a renter, you’ve probably found out by now that landlords do credit checks when you put in a rental application. Credit history isn’t always an indicator of whether you’ll pay your rent or not, but that doesn’t stop landlords and apartment complexes from using it as a screening tool. It’s hard to find good rental properties that accept bad credit and don’t do credit checks. Bad credit limits the places you can rent from and credit repair opens up more rental opportunities.
Save money on car insurance.
Again, credit may not have anything to do with whether you’re a good driver. However, insurance companies say that people with bad credit histories are more like to file an insurance claim. Because of that, a poor credit score will cause you to pay more for car insurance. You can save money on car insurance by lowering your coverage or raising your deductible, but that could present a problem if you ever have an accident. Insurance cost is another reason to speed up your credit repair.
You may have noticed a trend with the consequences of bad credit. Not only does bad credit make your life more difficult, it also makes life more expensive. Sure, you can survive with bad credit, but is “surviving” enough? As more businesses make the case to use your credit score, it will probably get more inconvenient and expensive to live with bad credit. Credit repair is difficult, but the result lets you save money and live better.
- Getting Approved With a Low Credit Score
- Don’t Swear Off Credit Cards After Credit Repair
- Legal Access to Credit Reports: Who Has It?
- 3 Steps to Protect Your Credit During Unemployment
- Timely Rent Payments to Impact Credit Scores