Credit card debt is something that America is very familiar with, because most Americans are saddled by credit card debt. You may be feeling the burden of debt yourself, but don't shrug if off as something everyone has. Did you know bad credit can affect many aspects of your life beyond just trying to get a new car or mortgage? Credit card debt can hurt your chances at jobs, starting a business and even when it comes time to get utilities hooked up for a new place. Read on to learn why it's so important to keep your credit report as clean as possible and free of blemishes. If you currently are underneath debt, this article will help you understand exactly why you need to fix your bad credit.

Many companies and lenders will look at each applicant for their particular product or service as a healthy situation or as a credit risk. They'll review your credit reports and if they don't like what the report is saying, you may be denied. This includes getting any new credit card accounts, getting a mortgage, leasing or buying a car, leasing a condo, and even getting utilities. How you handle credit is viewed as a predictor of future financial responsibility. These companies want to know that you'll be able to pay them the monthly payments or total owed. They'd prefer not to loan money or their service to someone who has displayed a poor history of paying off their debts.

Two areas that credit is very important (beyond mortgages) are when you attempt to gain employment at certain workplaces, and when you attempt to start your own business. A prospective employer may view the debt you currently have against you as too much when weighed against your prospective salary. In terms of entrepreneurship, starting a new business may require you to go for a small business loan. Again, the lender will view your credit history to determine if you are worthy of that loan, or a risk who they shouldn't trust with their money.

The worst part of having bad credit may not be when you are denied a loan, but instead when you are granted one, but with a higher interest rate attached. It will mean higher overall total payments made by you, than you would have made with a good credit history. Having good credit is very important these days for just about everything you want to buy, rent or lease. Keep that credit report as clean as possible and you will breath a sigh of relief the next time a lender tells you they need to check your credit history.