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Check your credit report
You'll first want to see what, if anything, lenders are saying about
you. That kind of information is contained in your credit report at each
of the three major bureaus: Equifax, Experian and Trans Union. You're entitled
to a free annual look at your reports from Free Credit Report.
Credit reports are used to create your credit scores, the three-digit
numbers that lenders typically use to gauge your creditworthiness. Lenders
also may look at the reports themselves, as may the landlords, employers,
insurers and utility companies who use credit to evaluate applicants.
Why do I need good credit?
That question goes through a lot of people's heads as they max out
their credit card or don't pay their automobile payment for a couple months.
It definitely and most certainly does! The benefits of having a good credit
score can be very rewarding and fulfilling. You might be asking yourself,
what exactly is a good credit score? Well, the average rating for people
in the US with a debt below the national average is 695. I will go over
some things that you can benefit from, by a positive credit score rating.
1. Borrowing Money from a Lender
Obviously one of the main things that most any potential lender
will look at will be your credit score. If you have good enough credit
then the lender will have no problem giving you almost anything you wish
with a very little interest rate. They do this because the better credit
you have, the less of a risk you are to that particular company. Those
with bad scores are likely to be reluctant to let you borrow anything because
they will take your 'bad track record' as a possible threat to you not
paying their money back. One thing lenders do not want to take chances
with is their money. Always keep that in mind.
2. Renting an apartment
Next, landlords also may be more willing to be lenient with you
if you have a very good credit rating. They check your credit score when
you fill out a rental application because they like to know what kind of
people are going to be living on their property. On the credit report it
shows if you are gainfully employed, if you have ever been evicted, and
if there are any delinquent late rent payments of any kind. Having good
credit can mean the difference between homely and homeless!
3. Employment Purposes
Also, employers of all kind would rather have a person in good standings
with the credit companies to work for them. Wouldn't you? Of course there
is some information on your report that employers look at for a prospective
employee. They like to see if your credit card bills are way maxed out,
and if it is, they might assume that it will hinder your performance on
the job. It also might list liens, mortgages, and bankruptcies. Additionally,
it will even have the name and addresses of your previous employers. But,
over all, they just like to see how responsible of a person you really
are. Reliability and responsibility are key benefactors of maintaining
a great credit record.
4. Lower Insurance Premiums
Insurance companies have also recently been granted access to check
your credit report as well. A large benefit of people with a good rating
is a much lower insurance premium. Yes, you can save even more money by
just being responsible! They think that the way you handle your credit
will be a good idea of how responsible you will be with them. Even if your
credit is bad, if you can manage to bring your score up, then you will
also get a drop in your insurance costs.
5. Cell Phone
Cell phone companies may look at your credit rating. Most people
have no idea what exactly is inside their credit report folder. If you
have a good credit score you won’t be required to pay a deposit on a new
cell phone contract. This can mean the difference between hundreds of dollars!
However, those that don’t pay their bills on time are subject to negative
strikes and blemishes on their credit records.
6. Purchasing a Car
The first thing automobile dealerships do, when you are interested
in buying a new car is pulling your credit report. Having hardly any marks
against you can drastically decrease the amount of money you pay on your
lease, or your car payment every month. Also, they check for any repossessions
of any kind. Good credit holders may also pay a lot less interest rate
on their purchases than others.
7. Getting good Credit Cards
Credit cards seem to be the way of the future and cash money seems
to be phasing out. Wouldn't it be nice to have the nicest, best looking,
and powerful credit card you can possibly get? Well, if you have a credit
score over 780 then it’s not just a dream. There are new credit cards out
now for people with outstanding credit that basically can get you anything
you could imagine. These cards actually have no interest, annual fee, or
even a limit! But be careful, they can get you in trouble. The main key
is just being responsible.
8. Background Tests
You may sometime in your life, for any apparent reason, be asked
to take a basic background test. Background tests can be for a variety
of different things, ranging from military reasons to health and professional
inquiries. These tests can show anything that's ever happened in your life;
from arrest records, traffic tickets, marriages, children, dental, and
hospital records, and of course, at the top will be your credit report.
People with good credit will generally pass these background tests with
no problem at all.
9. Respect
Having a good credit score means more than just having it on paper.
You can get special treatment if people see that your an outstanding and
responsible citizen. People also may be able to trust you more, as they
see your not prone to taking advantage of things. Also it gives you a feeling
of well being and goodness to be in good standings with one of the most
important agencies in the world.
In conclusion, these are just some of the examples that I have given
that can benefit you if you have a good credit rating. I would definitely
try and take advantage of these offers that are there for good credit standing
citizens. Maybe one day there will be even more factors and benefits to
keeping a nice clean slate. The idea behind having good credit is not only
trust from lenders, it is also being aware of your responsibility.
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