Bad Credit Report and Its Many Consequences

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If you think that bad credit report is only a piece of paper which only you and your credit company can see, think again. Different industries have found more and more ways and application of your little credit report. You might be surprised at the many applications your credit report has, and how useful it is now (at least for the other industries) as a decision-making tool. A credit report can potentially save companies time and money, if they knew how to process the information that can be seen in the report.

If you are applying for a job, you might find yourself in a position where you know you are the most qualified applicant and yet was not accepted due to reasons that are thediscretion of the company’s management you are applying for. This can probably be due to your bad credit report, since many companies believe that someone with bad credit history or report will show streaks of being irresponsible. This has yet to be backed up with statistics and numbers, but nevertheless many companies subscribe to this notion.

Another instance where your bad credit will haunt you again is when you apply for auto or home insurance loan.  Premiums will always be higher for those with bad credit reports than those with good reports. Again though not backed up by extensive data, a lot of insurance companies believe that bad creditors are consequently higher-risk candidates, perhaps because a bad credit somehow reflects negligence which will then translate to how one takes care of his home.

All in all, there are very good reasons why you should strive to keep your credit report and history as clean as they can be. Loan applications are also measured through the credit score and a good credit report will always command a more favorable loan results.

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