Most people know the obvious reason to have a clean credit report. Lenders heavily weigh your credit score when considering whether or not to approve an application for credit and at what rate and terms. The lower your credit rating, the more likely in their eyes you are to default on a loan and the more they will have to charge in interest rates.

Because having negative information on your credit file is the fastest way to damage your credit score, maintaining a clean credit report or working to clean a tarnished report is one of the best things you can do to raise your credit score and become a better candidate for low interest loans.

But that is only one benefit of having a clean credit report. Even if you have no intention of purchasing a new home, buying a car, or refinancing an existing loan, making sure your credit reports are as good as they can be still provides other benefits.

Employers like a Good Credit Rating

Credit reports aren't just used for credit anymore. Many employers today will want to take a look at your credit rating as a part of the application process. Before making a commitment on you, employers want to do their due diligence and for some, part of that investigation involves seeing how responsible you have been with your finances. Negative information on your credit reports could be a warning sign that you may not be trustworthy or dependable.

As a result, having a clean
credit report may be another qualification you need to get that new job.

Credit Card Companies Can Monitor Your Credit

Even if you have already been approved for a low interest rate credit card, you should be careful to maintain a good credit score because that rate isn't necessarily set in stone. Many credit card agreements feature what is known as a "universal default" clause in which credit card companies reserve the right to increase your interest rates if you are late on any payments, not just those to the credit card provider.

Come in thirty days late on your car payment and your credit card interest rate could double or triple as a result.

Your Auto Insurance Premiums Probably Take Your Credit Score into Account

Most car insurance companies these days will take a look at your credit score before they will be willing to issue you a policy. Their logic is simple. Statistically, people with low credit file more claims that people with a high credit score. As a result, auto insurance companies may choose to deny consumers with low credit score or insist they pay higher premiums.

If you have a good credit score, however, this works I your favor because, as a lower risk client, insurance companies can get by with charging your lower premiums.