Most of us want a good credit report to obtain vehicle financing, credit cards for emergencies and luxuries, and to finance a home mortgage. However, beyond these consumer loans, a great credit report makes your life easier.

Having a credit card means that you can order tickets, rent a car, and reserve hotel rooms. Your strong credit score makes it easy for you to arrange cell phone service and necessary utility services, without large deposits.

Besides these conveniences, your credit report can mean that you must pay higher deposits and rates for everyday services. Did you know that poor credit history can keep you from getting utility connections, good telephone rates, the best auto insurance, high-quality home owner's insurance, or even prevent you from getting hired?

Some utility companies set minimum standards for service connections. If your report shows collection accounts for prior utility bills, you may not be eligible for service at all. And if they do 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 high credit scores don't need to pay deposits for home telephone or cell phone services.

What many people don't realize is that good credit enables them to get better insurance rates. High-quality, low-cost home owner's insurance, auto, and life insurance companies set minimum credit standards for their policy holders. This means that consumers with poor credit have to pay more for less coverage. Many automobile insurance companies now base monthly premiums on credit scores. 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 consumer surveys, people who care about their credit also take care of their property and drive with caution.

Terrible credit can cost you a job. More and more employers look at a candidate's credit report and hire the person with better credit, assuming that better credit equals better integrity and character.

What you don't know about your credit could be hurting you. Don't wait until you need your credit to work on any problems. Strong credit translates to personal reputation.

(c) Copyright 2005 Jeanette J. Fisher. All rights reserved.