Some people could care less about their credit, but you never know what the future may hold. There are so many reasons to take care of your credit, even if you are very young. The following 7 reasons to try a bad credit repair company are some that I thought of, but I’m sure there are many more. Please pass these on to those who you think might benefit!
7 Lower Insurance Rates
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Yes, your credit history can affect how much you pay for insurance. Whether the premium amount being paid each month is for home, life, or auto insurance, these companies are interested in your past credit. They want to make sure you aren’t going to default on your policy. For those policy holders with good credit, an incentive is provided. This is in the form of lower monthly rates.
6 Cash Doesn’t Always Work
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I know most people like to use cash to pay for everything, but there are actually some things that can’t be secured with cash. Car rentals and hotel reservations are often made with credit cards. Having bad credit prevents credit card companies from offering you credit cards and also from accepting an application from you for a card. This might not be a big deal for you if you don’t ever rent vehicles or stay the night in a hotel.
5 No More High Security Deposits
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Many utility services check into their customer’s past credit report, just to see what their ratings are like. For instance, if they find out that a new customer has terrible credit that occurred from unpaid utility bills in the past, then the company might be more apt to charge a high security deposit. This will cover some of the cost if you end up defaulting on your utility bills, that way the company won’t be out so much money.
4 Get Rid of Debt Collectors
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Anyone who has been hounded by a debt collector knows just how annoying these individuals can be. I know they are only doing their job, but it really ruins a person’s day to get a phone call from an extremely crabby and persistent debt collector. Repairing bad credit to get rid of these obnoxious phone calls is probably on the top of the list for most people.
3 Lower Interest Rates
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Believe it or not, the worse your credit rating is, the higher your interest rates tend to be. Credit cards have what are known as finance charges, which are higher for those individuals with bad credit ratings. Repairing poor credit will keep the interest rates lower. Also, being sure to make your credit card payment on time will also help your credit rating.
2 Purchasing a Car
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Having bad credit will totally work against you when you decide to buy a car, even a used one. What loan company is going to be willing to give you money when you’ve failed to pay a past loan or run up credit card bills so high that you can’t afford to even make a minimum payment on them? If you are able to take out a small loan and simply put this money in the bank, then the loan can be paid back out of the money you’ve put into an account. Some people find this is a good start to repairing credit, before a credit repair company is ever called.
1 Buying a House
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Buying or renting a home requires good credit as well. Landlords usually do credit history checks on tenants, just to see if they are going to have to worry about their new tenant skipping out on rent. Banks won’t loan money to anyone who has terrible financial credit, sometimes even for a small loan.
Any of these 7 reasons to try a bad credit repair company work for all levels of bad credit. Even if you’ve only missed a couple of loan payments in the past, this still looks bad on your credit report. Have you already looked into doing some repairing of your bad credit? What made you decide to take this step?