Your clean credit report provides you lots of benefits in your financial life. Lots of people overlook the value of having a clean credit report and end up making mistakes along the way because of this. Here are some things to consider about how vital it is to have a clean credit report.
A key advantage of a good credit history is your being able to obtain finance easily. Every time you try to get any type of loan, the lender is going to first pull a copy of your credit report. They are going to evaluate your credit records for a number of different things. First of all, they are going to look at your credit score. They are also going to look at your history with all of your previous credit accounts. They will look to see if you have made regular payments and if there are any outstanding balances on any of your accounts. The lender will also check to see if you have any judgments against you on your credit record. As long as you have a clean credit report, they are going to look favourably at financing you in the majority of cases.
Another benefit of having a clean credit report is that you will be able to get lower interest rates. Not only will you be able to easily be approved, you are going to be able to save significant amounts of money at the same time. For example, if you can save even a fraction of a percentage point on your mortgage, this is going to potentially save you thousands of dollars over the course of a 30 year mortgage. It will also significantly reduce the size of your monthly mortgage payment as well.
You can save money in other areas too. For example, many people do not realize that insurance companies look at your credit score before they quote a premium to you. If you have a good credit score, you are going to pay less for your insurance premiums.
Another example of how you can save money is in the area of deposits. A lot of lenders require larger deposits if your credit history is poor. For example, if you go to purchase a cell phone and you have a bad credit score, they are going to require you to put a substantial down payment down before you can purchase the phone. Having great credit history can reduce the size of the requried deposit.
It's a great idea to check and repair your credit before you even approach a lender because if you approach a lender and get turned down, this gets reported on your credit records and so the next lender is not so inclined to approve you becasue they can see you've already been turned down. So how do you know whether your credit records stack up? Simple, go to the credit agencies, view a copy of your credit records and check them yourself.
Sometimes when checking your credit records, you might find negative entries on it that aren't even yours! They have been loaded there by mistake. You can get these removed, but there's a hard way and an easy way to do this. Investing in a credit repair software package is a great way to address this. The software steps you through the process, writes the letters for you and even diarises when you are due to get a response!
The great thing with software is it is a one-time purchase. If you've already found a mistake on your credit record you'll know how important it is to check your credit at least annually. With credit repair software, you're already armed and dangerous both to go and check your credit and to deal with anything untoward that may appear.
Having a clean credit report can help you in numerous ways. It should be one of your top priorities to protect your credit report and remove any negative remarks or statements on your report. If you do, you will be able to save significant amounts of money over the course of your lifetime and you will be able to easily be approved on financing of all kinds. With your credit rating affecting so many areas of your life, you need to do whatever you can to improve your credit record as much as possible. Otherwise, you are going to have many areas of frustration in your financial life.
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