Most of us want a good credit report to obtain automobile financing, credit cards for luxuries, and to purchase a home. But, beyond these consumer loans, your credit report can stop you from getting services you want.



Without a credit card you can't order tickets, rent a car, or reserve hotel rooms. You can use an ATM check card to reserve hotel rooms, but car rentals require a standard credit card. Poor credit makes it difficult to open a bank account and get an ATM card.

Besides these conveniences, poor credit can mean that you must pay high deposits and rates for everyday services.

Did you know that your credit report can keep you from getting utility connections, good telephone rates, the best auto insurance, home owner's insurance, or even keep you from getting hired?

Many utility companies set minimum standards for service connections. If your credit report shows collection accounts for prior utility bills, you may not be eligible for service at all. And if the utility company does agree to connect your service, you'll need to pay a higher deposit than another customer with good credit who may not need to make any deposit.

The same requirements exist for telephone services. People with a good credit history don't need to pay deposits for a home telephone or cell phone. Of Course, you can prepay for a cell phone, but you will pay higher charges for calls than if you qualify for a premium cell phone service.

Landlords may use your credit score to determine your security deposit prior to moving into a rental property, or even if you should be allowed to move in at all.

What many people don't realize is that good credit enables them to get better insurance rates. High-quality, low-cost home owners' insurance, auto, and life insurance companies set minimum credit standards for their policy holders. Consumers with poor credit have to pay more for less insurance 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 guard their credit also take care of their property and drive with caution. (Some states forbid this practice. Ask your insurance carrier for you specific state's policies.)

Bad credit can cost you a job. 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. Guard your credit so that you enjoy everyday conveniences, services, and employment.

Copyright © 2005 Jeanette J. Fisher. All rights reserved.