Most people are aware of the obvious reason to maintain a clean credit report. Lenders heavily weigh your credit score when considering whether to approve an application for credit and at what rate. The lower your credit score, the more likely in their eyes you are to default on a loan and the more they will have to charge in interest rates as a sort of "insurance" policy to make sure that as a lending institution, they continue to make money even when a few people don't pay off their debts.

Because having negative information on your credit reports 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 more qualified 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 rewards.

Employers like a High Credit Rating

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

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

Credit Card Companies Can Keep Tabs On Your Credit Reports

Even if you already have 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 contracts feature what is known as a "universal default" clause in which credit card companies reserve the ability to bump up 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 Rates Probably Take Your Credit into Account

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

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