Monday, January 26, 2009

The Positive Effects of Repairing Your Credit

By Ricardo Mendiola

There are many reasons you should consider repairing your credit if your scores are low. It may affect you in more ways than you think. Bad credit can decide whether or not you get the job you really want, if you are extended a loan, and determine the interest amount you get on a loan. You should consider these things if you are contemplating repairing your credit.

Bad credit can be detrimental if you hope to work in a bank or any financial institution that handles money. Many companies require a good credit score for you to be able to work for them. This is because many jobs require the position to have a company credit card. If you look irresponsible with credit cards the company will not be able to hire you.

If the position requires you to handle money, a bad credit score will cause the company to believe you are not trustworthy. Many companies are running credit reports on employees even if they do not handle money. Be sure you are not denied a job because of poor credit scores.

You can benefit by having good credit when it comes to a place to live also. If you want to buy a home or even rent an apartment it is important to have good credit. Most rentals won't look at you if your credit scores are bad. This is because you are a risk to the owner. If you have bad credit it looks to a landlord as if you will not be able to make your monthly obligations because you have too much debt. Even if you have a lot of income your credit scores will reflect that you don't care about paying your bills.

Securing a line of credit. One of the primary reasons for having good credit is so you can secure a line of credit. You can get a loan from a bank for a car, boat, home, RV, motorcycle, or any other thing you want to purchase. This is because good credit builds trust with banks that you are worthy of paying back the loan. You will also get a better interest rate from the loans when you have good credit scores.

Bad credit will also affect your interest amount. If you are repairing your credit and you have your scores up just enough to get a loan you may still get a bad interest rate. It is important to finish the process of repairing your credit. If you have good credit you may get an interest rate of 9%. Bad credit may put you in a position where you can qualify for the car but at an interest rate of 22%. Many people don't consider the interest rate but this means that you will be paying thousands more on a loan. The lower your interest rates are the better it is for you.

Having good credit is very important in many ways. You should consider these things if your credit scores are poor. Credit can affect a decision for employment in a position you want to work in. It can affect if you get a loan for a line of credit and it can affect the interest rate you get on a loan. These are very important factors you

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