Credit is important. It affects major buying decisions; such as the purchase of a car or a house. Good credit helps get a lower rate of interest on a credit card, car loan, and a home mortgage. More than a few employers want to know how responsible you are financially before hiring. Good credit validates your concern for responsibility. Bad credit belongs to a separate species. It is the opposite of good credit. It creates obstacles in your path to securing a home, a car, or a credit card loan. It can affect your chances of securing a job.
How do you get bad credit?
Getting bad credit is easy. All you have to do is to borrow money and not pay it back in a timely manner. A faster way is to declare bankruptcy and refuse to pay at all. Do this and you will have such bad credit that you will have a hard time finding a willing lender or a job. It will adversely impact your major life decisions.
How do I know if I have a bad credit?
Fair and Isaac Corporation (FICO) has created a mathematical model. The model rates a person's credit worthiness through a number. People can get scores between 300 and 850. Lenders define what numbers constitute a bad credit for them. A large number of lenders consider scores below 620 bad. This number is called credit rating. Lower credit rating signifies higher bad credit.
How to repair bad credit yourself?
You can improve your credit ratings. Here are five ways that will fix your credit ratings over time:
Bad credit affects your life in several ways - it makes credit more expensive and it hurts your chances of getting a job. You can fix your bad credit if you remove wrong negative information from your credit reports, use your cards responsibly, and consult a credit repair professional.
How do you get bad credit?
Getting bad credit is easy. All you have to do is to borrow money and not pay it back in a timely manner. A faster way is to declare bankruptcy and refuse to pay at all. Do this and you will have such bad credit that you will have a hard time finding a willing lender or a job. It will adversely impact your major life decisions.
How do I know if I have a bad credit?
Fair and Isaac Corporation (FICO) has created a mathematical model. The model rates a person's credit worthiness through a number. People can get scores between 300 and 850. Lenders define what numbers constitute a bad credit for them. A large number of lenders consider scores below 620 bad. This number is called credit rating. Lower credit rating signifies higher bad credit.
How to repair bad credit yourself?
You can improve your credit ratings. Here are five ways that will fix your credit ratings over time:
- Remove negative information - The first step toward improving your credit score is to remove inaccuurate information about yourself. American law makes you eligible for a free credit report once a year. You can write to the three largest credit bureaus - Experian, Equifax, and TransUnion - for a report. Once you have it, go through the report to find errors. If you do find any, write to the creditors to get them removed or fixed.
- Adhere to responsible credit usage - FICO considers five factors to assign credit scores. To borrow only what you can payback, and to borrow less than your credit card allows constitute old but effective responsible credit usage habits. It is wise to pay in time. When it comes to measure your credit scores, nothing is more important than timely payments.
- Consult a credit repair professional - A credit repair professional can equip you with credit repair techniques which you would otherwise be not aware of. It takes a long time before bad credit is written off your financial history. A professional can educate you on techniques which can bring about desired results faster.
Bad credit affects your life in several ways - it makes credit more expensive and it hurts your chances of getting a job. You can fix your bad credit if you remove wrong negative information from your credit reports, use your cards responsibly, and consult a credit repair professional.
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