CREDIT AND CREDIT REPAIR AS TODAY'S HIERARCHY
Credit is borrowed money used to purchase goods and services when you need them thereby ensuring some needs are met. Credit repair ensures your chances for accessing credit are increased by lenders. From the theory, Maslow identified five levels at which the needs must be satisfied.
At the bottom of the pyramid are physiological needs which constitute the most basic amenities for human survival. These needs are food, shelter, clothing, water and physical needs. Provision of housing may be through renting or buying. Landlords check the credit history of potential tenants thus credit repair is essential in ensuring the need for shelter is met. When buying a house through mortgage, a low credit score may mean increased interest rates by lending institutions reducing your chances of accessing the mortgage.
The second level of needs is the safety needs. Individuals are driven by the need to gain job and financial security, health security, family security and environmental protection. Financial security is gained through high credit scores due to better management of debt. When short listing candidates for job opportunities, employers check the credit rating of the future employee thus a higher credit score will increase your chances of job security. One can access better health amenities through credit and insurance.
The third level of needs is the social needs, need for companionship, friendship and belonging to a group. While not always the case, people tend to associate with success. Poor credit ratings may be viewed as a failure. One may find themselves shunned when the consequences of bad debts start being felt such as recalling of mortgages by lending institutions. In such cases, credit repair is essential to restore broken relationships for the individual to have a sense of belonging.
The fourth level of needs is the esteem needs. Closely hinged on social needs, they include pride, prestige, recognition from others, status and self recognition. Credit increases an individual's status in the society through achievements one may make using the availed resources. An example would be purchase of luxury items such as a yacht. Building a business empire using loans is another example that can only happen if one has a good credit rating. They give one status and good standing in the society.
The last level in the hierarchy of needs is self actualization. This is the need to be the best one can be by developing to their fullest capabilities and achieving worthwhile goals. Once all other needs are met, an individual is said to be self actualized. Career wise, family life, social standing and all other goals have been met. The individual may continue self improving on areas they feel need to be polished up.