Bad Credit Happens to Good People

Did you know that a poor credit score can negatively affect nearly every aspect of your life? Most people are aware that credit scores can affect their loans and credit situations but did you know that it can affect everything from your car to your house to your insurance premiums? We often overlook the control our credit score has on our lives. Your credit score plays a vital role in your financial future.

By keeping a good credit score you are allowing yourself to reap the benefits of more job opportunities, paying less interest on loans and being able to get approved for loans (such as a mortgage, auto loan or business loan). So, the million-dollar question is how do you maintain a good credit score? To maintain a good credit score, you must know the calculation that goes into your credit score – your payment history, level of debt, credit age, mix of credit, and recent credit. Paying your bills on time, maintaining a low credit balance, managing your debt, not closing credit accounts, limiting applications for new credit cards, and watching your credit report closely can help your credit score tremendously.

If your credit score is not at its best right now, do not worry. There are ways you can improve it! The first step you need to take is to pinpoint what you need to improve – what is the error causing your poor credit? You can start this process by requesting and reviewing your credit report. Next, create a plan to improve your credit score and begin to build your credit. The sooner you get a handle on your score, the better. Do not procrastinate; small steps can make a difference, so start today!