How Your Credit History Can Affect You

Having good credit is highly important for several reasons. When someone has a poor credit score it can keep you from getting loans for a home, vehicle or even for a personal usage. One thing you will want to do is check out your credit score and see how it stands now.

You can do this by getting in touch with the main three credit report bureaus which are Transunion, Experian and Equifax. This way you will be sure to know where all three of your credit scores stand and if they are something you will need to improve on.

Once a year you can get a form letting you know about your credit score and you will be able to see if there is things you will need to repair. Scan over the form and if you see negative marks on something then you can contact that business and ask them more about it.

In some cases, if you have paid that certain business off and it still shows up you can let the credit bureau know and they will take charge. Sometimes this can take up to sixty days and if the business doesn’t respond back with the bureau then it is taken off your credit report.

After it is taken off your report then a couple of weeks later you will see your score has went up a little. Always be aware of your credit score because this is what most companies will go by when you are applying for a loan of any kind. Having credit that is positive will make a good impression on you with any sort of company that you deal with it let them know that you aren’t going to be a risk for them.

Also keep in mind that even if you have a low credit score there are places that will let you take out a loan with them but the risks are quiet high especially with the interest rate and some companies will want something as collateral.

The reason they do this is because in normal circumstances a person that has a low score will be a risk to them whereas a person with a higher credit score will be less of a risk and will not have such a high interest rate. A few things that can hurt your credit score is not making a payment on time, having an account charged off, not paying anything at all on an item, and having an account sent to collections.

Those are just a few things you will not want to do or have happen to you. If you are trying to help your credit score then you will need to not close unused accounts, only apply for credit when you need it and when you do make sure to check out all the offers and find one that will benefit you more.

If you get divorced make sure to separate your account from your spouse. If not then they will be able to have access and can hurt your credit. Try and avoid excess inquires because when you take out more than one credit card or loan then they will report it to the main three credit report bureaus.

If at all possible avoid the thought of bankruptcy. Most people when having this done do it because they have no other alternative but in most cases it will hurt your credit score. If you do file for bankruptcy you won’t be allowed to get a loan for up to seven years among other things you will be limited by. The only good thing about bankruptcy is the harassing calls and letters will stop. This is something people should take very seriously if they take that kind of step.

How your credit score affects you is by having a poor credit rating. The credit score ranges from around three hundred to eight hundred and fifty. The higher your score the better off you are by any means. If your score is above average or higher then you are eligible for a low interest on car loans, house loans and insurance. Nobody wants to pay high interest fees and outrageous mortgage payments so the sooner you can get your score higher the better you will be. People also are not aware that your credit score can also affect a job you want to get and insurance on your home and vehicle.

If you do not want this to happen to you then you will need to find ways to improve your credit score. There are several ways to do this some solutions is listed at the top but there are other things you can do to help your score go up. One option you can think about doing is get a hold of a creditor and negotiate with them. Let them know you are having financial problems at the moment and would like to work out another payment plan instead of being turned over to a collection agency.

Most companies will try and work with you because believe it or not they do not want to turn you in to a collection agency they want their money so they will try to find a solution that works with you both.  Here is a list of things they might be able to provide to you if you make an effort and show good faith in committing to this. 

·      They can reduce the interest rate

·      Reducing the monthly payment

·      Do not charge you the extra late fees or finance charges

·      Some will let you skip one or possibly two monthly payments but this will just extend the loan

·      Let you close your account which will allow you to be able to make payments you can afford and lessen the balance which is outstanding over a period of time

·      Some will suggest to close the account and will accept an settlement for a lesser amount than what you actually owe

·      Refinance your loan at a lesser interest rate and for a longer term so it can reduce the monthly payments

Those are just a few examples of what some businesses will do to work with you and helping you with your credit so it does not go bad. Over the years people have just now come to realize that a credit score is very vital. Most do not realize this until they decide to take a loan out for whatever reason.

When they find out that they are paying an outrageous interest rate then they start asking questions bot of course by then it is sometimes too late. Nobody wants to pay more money than they have to because let’s face it the economy these days is in a bad situation. Always make sure you are not settling and get a good deal when you are searching for a loan.

Loans are there for a reason and it is to help people for whatever purpose such as medical needs, vacations, paying a house bill or you just need the extra cash. Having a credit score is also there for a reason and that is it helps providers know what kind of risk you are and if they can be safe in offering you a loan. Whether you want to believe it or not you are putting yourself along with your family at risk if you have a low credit score.

Sometimes it can’t be helped for whatever reason but also keep in mind that it can be resolved you just have to take the appreciate steps in doing so. Constantly check on your credit score and this can be done by going to certain trusted websites. Find a way so you can receive once a year a credit report form from one of the main three credit report companies.

Do not be afraid to ask questions about your credit score and find ways to clear up any creditor that is on your credit sheet that isn’t supposed to be there. People make the mistake and overlook this thinking it is okay but sometimes a bad creditor can affect your score in a big way.

Also do the research and find a company that you are comfortable with to help you straighten out your credit situation. There is a wide selection of them out there that is more than willing to help people out. Let them know where your score stands now and ask them how you can improve it to make it higher.

These companies are out there for that reason only and that is to help individuals increase getting their scores higher. If your score is at five hundred then you want it to be at least in the seven hundred ranges because the higher your score is the less likely you will ever have a problem with higher interest rates. You also have to remember that even if you have a perfect credit score if you do not make your payments on time or late on a payment ever so often that your score will eventually start dropping.


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