Most people are aware of the obvious reason to maintain a clean credit report. Lenders heavily weigh your credit score when considering whether to extend 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.

Potential 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, that investigation involves seeing how responsible you have been with your finances. Late payments, collections accounts, and court records on your credit reports could be a red flag 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 Providers Can Keep Tabs On Your Credit

Even if you have already been approved for a low interest credit card, you should be careful to keep your credit reports clean 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 providers reserve the ability to jack 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 Premiums Probably Take Your Credit Rating into Account

Most auto insurance providers these days will want to see your credit rating before they will be willing to issue you a policy. Their logic is simple. According to statistics, drivers with bad credit file more claims that people with a high credit score. As a result, car insurance companies can elect 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, auto insurance companies can get by with charging your lower premiums.