What Your Credit History Says About You
Your credit history is fundamental in determining your future financial goals. Good credit history can help you get jobs, credit cards, apply for loans and even get a house! Bad credit history, however, can prevent you from getting all of these things and more. Having a history of bad credit can lead to increased interest rates and severe roadblocks in moving forward financially. Failure to pay credit card bills on time often increase interest rates, which only makes it harder to pay off the balance on the cards. Credit has a kind of snowball effect, which is why maintaining a good credit history is vital to your financial well being. Did you know that some employers check your credit history before hiring you? Sounds grossly illegal, I know, but it happens all of the time. And a bad credit history says that you're irresponsible to employers and might just cost you that job. How do these companies find your credit history, you may ask? It actually quite simple to do a credit check on someone. Your credit history is detailed on a document called a credit report that is accessible to you once per year for free. A credit report contains your payment history, mortgages, loans, collections and other personal information that is of interest to creditors and loan companies. So how can you maintain good credit history that impresses loan agencies, creditors and employers alike? Pay your bills on time every time! This is one of the most important factors in good credit history. Likewise, use credit cards sparingly. Credit cards should be thought of as emergency cushions, not as a way to spend beyond your means. Likewise, immediately inform institutions if your credit cards are lost or stolen. Getting your credit card cancelled as soon as you can after such an occurrence reduces the likelihood of getting maxed out. Check (and check again!) your credit report. Make sure all of the information is accurate, because it reflects on your credit history and responsibility. Bring it to the attention of the credit bureaus if there are any inaccuracies. Be sure to maintain good records of all of your financial doings in order to back up your claims. Likewise, keep detailed records of any communication with the credit bureaus and creditors, just in case the situation is elevated to the point that legal action needs to be taken. Lastly, if you need a quick and quite easy way to improve your credit history, take out a credit card at a department store or gas station. These credit cards are fairly easy to get, have lower limits and are good way to prove yourself as having good credit. Be sure to pay the balance in full each and every month.
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