This post may include affiliate links. Don't worry though: We only recommend products and services that we believe may be helpful — scout's honor.(Last Updated On: January 2, 2019)
This post is sponsored by Lexington Law.
If your credit report has some negative remarks, credit repair is something you can do to clean house. Credit repair is any activity that improves your credit history. You can do credit repair yourself by paying off some debt or filing a dispute to get late payments of inaccurate records removed.
If you aren’t sure how to clean up your history, you can hire a credit repair company to help. Lexington Law is a trusted resource in credit repair that offers credit repair services.
The major benefit of credit repair is that it can help clean up your credit report. Why is this important? You may not realize just how much of an impact a credit report has on your everyday life.
Here are the advantages of repairing your credit:
Credit Repair Can Increase Your Employment Opportunities
Believe it or not, your credit can influence your employment. Employers are curious about your financial history mainly because they want to gauge how responsible you are with money.
Think about it — would you want to hire someone who’s missed multiple payments and has some poor credit history? The way you manage credit could be how you’ll manage the future job.
While your credit isn’t the sole influence for being hired or promoted, it could be what makes or breaks the decision. It can be hard trust an employee with a company’s cash or credit if they can’t even manage their own.
Allows You to Use Your Credit vs. Cash
Building your credit makes it possible for you to get approved for credit products. These can come in handy. If you’ve ever tried to rent a car or get a hotel room, you may have noticed how difficult it is to do so without a credit card. Sometimes, it is super inconvenient to try and use cash or a debit card.
For example, some rental car companies require a deposit before renting a car if you’re using cash or a debit card. You get that money back, but it’s still a hassle to come up with an extra $150+ deposit just to rent a car. Sometimes they put a hold on cash that’s in your account which could put a real damper on things if you’re taking a trip.
One of the advantages of repairing your credit is you’re able to apply and be approved for credit cards. This can make spending more convenient as long as you make the appropriate payments. Plus, you can earn and use points and miles when spending on a credit card. Just make sure you use it responsibly (aka using the card and paying it off monthly to avoid monthly interest charges).
You Can Start a Business a Little Easier
While some businesses and entrepreneurs bootstrap their business, sometimes you need capital or an investment. It’s easier for a lender to trust you and believe in your start-up when your credit is decent. While not everyone wants to start a business, this is one of the best advantages of credit repair for those that do. Imagine how your business can thrive if you’re able to get the capital you need to invest in it.
The advantages of credit repair aren’t all about lower interest rates and better car insurance. They can affect even your day to day life, like securing a better 9-to-5 job, getting a promotion, or even starting your own business.