What you don’t know about your credit could be hurting you.

Why Good Credit is Imperative

Most consumers want a good credit report to obtain automobile financing, credit cards for luxuries, and to purchase a home. Having a credit card means that you can order tickets, rent a car, and reserve hotel rooms. What many people don’t realize is that good credit enables them to get better insurance rates and that bad credit can cost them a job or even utility connections.

High-quality, low-cost home owners’ insurance, auto, and life insurance companies set minimum credit standards for their policy holders; this means that consumers with poor credit have to pay more for less coverage. Many automobile insurance companies now base your monthly premiums on your credit score; these companies offer a 17% discount if your score is over 625 and a 25% discount if your score is over 725. Why? Because according to their studies, people who are careful with their credit are also careful with their property and careful drivers.

Also, more and more employers run an applicant’s credit report and hire the person with better credit, assuming that better credit equals better integrity and character.

Strong credit translates to personal reputation.