subject: Positive Reasons Why Repair Bad Credit [print this page] Some people may put off repairing their bad credit thinking that it can only be a big disadvantage when applying for a loan or credit card. But did you know that having bad credit can also cost you your dream job? Yes, there's more to your credit score than just getting a quick loan or credit card approval.
Why should you be interested in repairing bad credit? Take a look at the following reasons why you should strive to keep your personal credit in good standing:
1. Get the best interest rate. The higher your credit score is, the lower your interest rate would most likely be. This proves to be true whether you are applying for a loan or a credit card. In fact, you can even get the lowest interest rates from insurance companies - whether it's on your auto insurance, life insurance, or home insurance, if you have an excellent score.
2. Eliminate security deposits. If you have bad credit, your only option to get approved for a credit card or a loan would be to submit security. Lenders can ask you to pay cash deposit or submit collateral to minimize the risk of payment default. On the contrary, if you have an impressive credit score, it shouldn't be difficult for you to get approved.
3. Get a higher credit limit. Having a higher credit line is a big advantage because it can protect you from exceeding or maximizing credit usage. Needless to say if you have bad credit, a creditor would surely restrict your credit limit.
4. Strengthen your negotiating power. When you know that you have good or excellent credit, you will be more confident in dealing with potential creditors. Negotiating would be easier if a creditor can see that you can handle debt and repayment responsibly based upon the information in your credit report.
5. Get approve for a mortgage more easily. Because a home loan involves a huge amount of money, many creditors have strict standards when it comes to approving mortgage applications. If you have good credit, you would be in a much better position to buy the house of your dreams and get a home loan with the best deal.
6. Choose the apartment you want. Creditors are not the only ones who check credit. Even landlords use credit reports to check a person's background. IF you have bad credit, a landlord may think twice about accepting you as tenant, doubting your capability to keep up with the rent.
7. No need for a co-signer. It's not easy to convince a person to guarantee or co-sign credit on your behalf but you don't have to piggy bank on someone else's credit history just to get approved for a loan or credit card if you have good credit standing.
8. Get approved for a business loan. When starting a business, creditors would be using your personal credit upon reviewing your business loan application. Of course, you may find impossible to get a business loan if your personal credit is blemished.
