Having negative items on your credit report, whether accurate or not, will cause you problems in three areas of your life:

1. Higher Interest Rates – If you have a low credit score you will pay higher interest rates on everything from car loans to home mortgages. That is assuming that you would qualify at all.

2. Employment – Many companies will run a credit report on you before they will hire you, especially banks, retail stores or anywhere else that handles cash. These companies view someone with bad credit as being at a higher risk of theft or fraud.

3. Home & Auto Insurance – Almost every insurance company will check your credit. You will be charged higher premiums if your credit is bad because they see you as more of a risk for insurance fraud.