10 Reason to Repair Bad Credit

Bad credit not only keeps you from getting a credit card or loan; it can leave you homeless, carless, and even worse, jobless. This is due to the fact that more and more businesses are using your credit to make decisions about you. If this isn't reason enough to get your credit in order here are 10 reasons why you should repair your credit.

1. Save money on interest Low credit scores mean you have higher interest rates and pay more on loan balances.

2. Lower insurance rates Your credit history affects what you pay on insurance premiums. This includes home, auto, and life insurance.

3. Stop paying high security deposits Phone companies and utility service providers check your credit before establishing service. They charge a deposit to offset the risk of default. Bad credit can often mean a hefty deposit amount.

4. Get a higher credit limit The more you pay bills on time; creditors will increase your credit limit. Before an increase though, they will check your credit.

5. Buy a new house Owning a home has always been the American Dream. Bad credit means a high interest rate that can often make a home unaffordable.

6. Rent an apartment Bad credit can not only keep you from buying a home, it can also keep you from renting an apartment. Landlords check credit to determine the probability that you'll be late on your rent.

7. Buy a new car Auto lenders are among the many businesses that often check your credit before lending to you.

8. Get a job Employers will check your credit before deciding to hire you. A bad credit history can cost you a job or a promotion.

9. Stop relying on co-signers When your credit is bad, you'll often need others to co-sign for credit cards and loans. This puts financial pressure on them and they don't receive any benefit.

10. Start your own business Starting a new business takes money, so to get your business off the ground many entrepreneurs often rely on small business loans. Bad credit can keep you from getting financing.

Country Moutain Coastal is a member of the Financial Empowerment Network Team and Prime Financial Credit Services
you can also visit creditfor more information on Country Moutain Coastal.

Is Credit Repair Ethical?

Most Americans know that it is possible to have information changed on your credit report, but many are concerned about whether or not it is ethical.

This begs the question: If you were to start up a credit reporting agency, how would you go about it? After all, isn't that what Experian, Trans Union and Equifax have done?

Well what would you do? The process requires that you contact a variety of financial institutions, taxing authorities, collection agencies, etc. and then propose to pool that information into one record source that could be mutually accessed by all participating members. The credit agencies love to say, "don't shoot the messenger", but in fact, they have solicited, finagled, begged, pleaded and bought their way into the "messenger" position. This is the very reason why there are 3 main reporting agencies and not just one – competition for business!

Once you understand that, the Fair Credit Reporting Act makes a lot of sense. You see, since 1971, and with numerous amendments and subsequent Acts passed by Congress, the issue at stake is not their capacity to report, but rather, the privacy of US citizens.

Trust me; these agencies would report your age, sex, religion, bank account balances, health records, blood pressure, driving record, and your grades from elementary school if they thought they could get away with it. The core purpose of the FCRA and other Acts like the Fair and Accurate Credit Transactions Act is to place the burden of proof upon the credit agencies, and NOT the consumer.

It is as if the credit agencies are writing a book on every financial relationship you've had since age 18, and they offer, on the cheap, to sell that book to anyone who wants to join the book club. When a consumer attempts to challenge the information contained on their report, they are merely calling for a "fact check" with the publisher. The FCRA requires that information contained on a consumer report be 100% accurate, complete, and verifiable.

Back to the ethics question. Let's say I own a million-dollar home with a million-dollar mortgage balance. I've never been late. Is it really EVERYBODY'S business to know how much I owe, when the debt was taken out, whom is obligated on the debt, the current balance, which bank, the payment amount – and ALL of that in addition to the payment history? Wouldn't it be sufficient to state "George pays his mortgage on time?" A person inclined to privacy might want to have that information deleted, even IF they pay on time. The fact that someone chooses to challenge the negative information is merely an expression of their right to privacy. Let's hope we never get too cavalier about that.

I am a member of the Financial Empowerment Network Team and Prime Financial Credit Services

Your Credit Score Is Yours to Control

Are you confused by credit, and how to create a better credit score? Don't feel bad, many consumers and business people find it hard to understand why their credit score is low. They pay their bills. And when they are a little late on a payment, they pay extra fees to the Lenders to make up for that. The Lenders enjoy great profits, and yet, the Borrower gets penalized more. Is it fair? I say NO! Enough! It's time for us to take control of our credit scores, and get them to reflect accurately, what kind of people we really are. In fact, the United States government agrees. Toady, there are laws to protect us, and allow us to take back control of our credit histories and credit scores.

Use these laws to make sure you aren't forced to pay more for auto loans, credit cards, mortgages, insurance and utilities. Besides costing you more money in monthly bills, we've been hearing more about people who get job offers that are later taken back, because of a "bad" credit score, a result of having been out of work for a year or longer. They didn't use credit to support a luxurious lifestyle. Ironically, they are penalized by taking away the very thing that they need to get back on their feet and to get back to paying their bills. Is it just me, or does it seem ridiculous to you as well? Credit reporting agencies, and Lenders, seem to believe that it's their right to penalize consumers to any level that they choose. The US government says it isn't their right. It is their right to report late payments and defaults on payment agreements, to the extent that they report it accurately. Is the information on your credit report accurate?

Frits Tessers is a member of the Financial Empowerment Network Team and Prime Financial Credit Services
you can also visit Personal Coaching for more information on Frits Tessers.