7 REASONS TO KEEP A GOOD CREDIT
Keeping poor credit does more harm than you think. It can leave you without a home, a car, or a job. This is due to the fact that more and more companies rely on your credit when making decisions about you. Having a hard time believing that you need a good credit rating? We will give you 7 reasons why it is important to repair your credit.
Reduce the cost of interest
If you have a low credit score, your credit card balances will accrue higher finance charges. By repairing your credit, you can get a better interest rate and reduce your interest payments.
Put an end to high-risk deposits
Most utility companies and even phone companies run a credit check before providing you their services. Typically, a deposit is required by those service providers to safeguard against defaults. By paying on time, you will not only be able to recoup your deposit, but a better credit score will give you the opportunity to pay a much lesser amount as a deposit.
Reduce the cost of your insurance
Credit plays a significant role in determining your insurance premiums. The coverage includes homeowner’s insurance, car insurance, and even life insurance. A person with a bad credit history will have to pay a higher insurance premium compared to someone with good credit.
Getting rid of cash payments
A bad credit rating will make it difficult for you to obtain a credit card. This means you may end up paying cash for a lot of things, which can be a real challenge in the events you need to pay a lump sum amount of money.
Buy a New Assets
Bad credit can be a nightmare that often becomes a hurdle in achieving your dreams. Most of these dreams include good financial stability so you can buy your own home and a car. Buying these large assets requires getting a mortgage from banks, but bad credit can prevent you from getting a mortgage. If you are planning to move out, a negative credit balance may also prevent you from renting your own place as many homeowners like to keep it safe by checking credit records.
Believe it or not, but a bad credit rep can also prevent you from working your way up in life, by simply getting a job. Many jobs, mostly in the financial and management fields, require a credit check as part of their hiring process. Even if you may get hired, a bad credit report can become a hurdle in your promotions later on.
How can I keep My Credit Score Positive?
Many credit repair companies serve the purpose of clearing your credit history by removing impurities from your credit card and offer credit counseling services that allow you to stay put from hoarding negative balances on your credit card. To reach out, you can simply browse through your computer with keywords: “credit repair near me” and the most reputed companies will pop up.