Credit Repair

6 Reasons to Repair Credit Report

Many people who understand that their FICO score is not at par still keep procrastinating on the task to repair credit report. They think that the only thing that a bad FICO score can do is to make it a little difficult for them to get a loan or a credit card. In reality, the adverse effects of a damaged credit go beyond that. You may have difficulty in getting new jobs or getting promotion in your current job even if you are a deserving candidate otherwise. Besides that, such conditions may even leave you carless or even homeless. It means you are in a more serious situation that you realize. If you are still not convinced, review these ten reasons.

Qualify for Low Interest Rates

Having a damaged credit can have a serious negative impact on the interest rates. You are likely to be charged a very high rate of interest on your credit cards and other loans that you borrow. When you repair credit report, you can make things a little easier.

Qualify for Low Insurance Premium

If you are paying very high amount of money as part of your insurance premium, it is probably because of your low FICO score. You can cut down these expenses to a very low amount by fixing the negative entries that are showing up your credit report. It applies all types of insurance policies, be it auto, home, life, or health.

Qualify for Low Security Deposits on Utility Services

Utility service providers may ask you to pay high security deposits because of your bad FICO score. When you apply for an electricity connection or other utility services, the service providers do a thorough credit check. If they find your score is at par, they may not even ask you to pay any deposit at all. So, that gives you another reason why you must repair credit report.

Qualify for a Higher Credit Limit

Banks and credit card companies do a credit checking in order to determine your credit limit. You may be offered a low or high limit based on your FICO score. A better score will help you qualify for higher limits. A better score shows that you have been very good in paying your bills in a timely manner. In case of a low score, you will be offered a low limit, which can be increased as your FICO score increases.

Qualify for a Low Rate Mortgage

Having a bad credit history may disqualify you from getting mortgage loans. Even if some lenders do offer you a loan, they will charge you a very high rate of interest. On other hand, when you repair credit report and remove the negative entries, it will help you easily qualify for mortgages with very low interest rates.

Get Your Rental Application Approved

Even landlords these days first do a thorough credit checking in order to ensure that you are able to pay the rents on time. If you have a poor FICO score, your rental application may straightaway be rejected. On the other hand, you can significantly improve your chances of getting your rental application approved by correcting the errors and removing the negative entries that are showing up on your report.

Overall, there are more reasons than you realize why you must repair credit report. If you keep procrastinating on this issue, things can become horrible soon.


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Posted in Credit Repair, Fix Your Credit | 2 Comments »

2 Responses to “6 Reasons to Repair Credit Report”

  1. kate says:

    Credit is the backbone for applying any types of loan because any high profile financial institution will not approve your loan because credentials are important for approving a loan. If FICO score is bad you are not liable for a loan. So improvement of credit score is a must. Small institutions can only approve your loan in return they will charge high rate of interest and the file charges will also be doubled. Also the service providers will charge high because of the low credit score. Also If you do not pay ur credit card bills you will not be in a position to apply for another credit card plus for availing any facility it is a requisite condition that your papers should be valid and complete. Mortgage loans are not sanctioned for a bad credit scorer person.

    This article gives a very goog insight as to why the credit rating is important for any individual.Even if you want to go for a rented house still credit rating plays a crucial role. Rented accomodation will be provided to a customer only is the FICO score is good.So we must follow the do and donts of applying a loan and has to keep in mind that we should not be defaulters.

  2. john says:

    “Six reasons to repair Credit Report”, really works as an eye opener. It tells us about the effects of a bad credit score and every point has its own value. We have to understand that bad credit scores affect us in every field of life. If we are not punctual in the repayment of our credit card bill, we will have to pay very high interest on the amount. Same will be go with partial payment. Some companies offer the facility of partial payment but this also leads us for giving high interest and the debt will also peep rising. It is good to make a habit of full payment. By doing this, we can make our score good as well as we can feel good and can lead to a debt free life. One other point mentioned in the article is about that Insurance premium is also very exciting. If we have good credit score, we will be able to pay low insurance premium and we can save the amount deficit used in any odd time. Good Score can give our credit limit height. If we pay our bills at a definite time, we will get our credit limit much higher than before and it will be better for us. For all these, we have to start from a basic step that is Always remember to pay he bill in time monthly or quarterly depending upon the choice or the company’s norms accordingly. Good score can help you to get a house on rent because the landlords will be relaxed and the rent amount is coming on time. Consistency is very important to get a good credit report and good credit report will help us in every aspect of our life and we will never get into the credit debts. We should use Plastic money with some rules and regulations then it can give us a happy life.

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