by Nicole Z Peterson

Most individuals comprehend how essential it is to have a clean credit report and a high credit score when they try to get a loan for a house or an automobile. Lenders take the credit information very seriously and they can charge a higher interest rate or even turn down credit altogether based on the information from the credit report and credit score.

Nevertheless there are also a few other things that most people are not even alert of relating to credit reports and credit scores. Damaging credit can affect you in a few unforeseen ways.

If you are a credit cardholder you need to make sure that you keep a good credit score and a clean credit report. Credit card companies are infamous for finding any rationale that they can to jack up your interest rates. If you are a cardholder they can examine your report and if you show any damaging credit they can boost your rates, even if you have never been late on a payment to them! The teaser opening rate could double or even triple if your credit report is terrible.

Any imperfection showing on your credit could change the rates you are paying on your cards. If these problems are erroneous or mistaken they can still have an effect on your interest rates so it is wise to try to repair any problems that you can.

Your credit score and your credit report can also change a job search. A potential employer can do a credit inquiry as part of a background check with your permission. It is authorized for them not to employ you based on your credit. They must have special authorization to access your credit history though.

While you may not even be considered for the job if you have bad credit, a good credit score may mean the distinction between getting hired or not if you are one of a few similarly competent prospects. It is important in these changing economic times to make sure you have every benefit in the job marketplace.

A third surprising advantage for having a good credit report is that insurance companies can turn you down for coverage if you have bad credit. According to their in-house investigation they have determined that drivers with bad credit actually submit 40% of all claims. If you have bad credit you are deemed a higher risk to the insurance companies. The figures may be as high as 90% of automobile insurance companies use credit reports as an underwriting tool.

While many of these things seem unjust and unfair the fact is that our credit affects more than we comprehend. Do what you can to sustain good credit if you have it and if you don’t take the steps needed to improve or repair your credit.