A good credit is important for anyone to have. Having good credit keeps more money in your wallet. It enhances your position as financially responsible person. This indicates that less credit is in the credit card firms and banks. Unfortunately, many credit card owners don’t know their own credit scores or how to read their credit reports. This is a big disadvantage in a world where credit cards are used to make almost every purchase. If you have a good credit card history, it will easier for you to apply for a loan or a pre-paid debit card, and many companies and businesses would readily extend their services to you.
If you are experience bad credit you are not alone. According to the report of the urban institute, 77 million Americans with a credit file have a report of debt in their collections. People’s negligence over how to manage their credit reports, lack of intelligent spending, lack of knowledge about credit repair companies and company’s own incompetence in producing inaccurate credit reports have all added to this credit issue in America.
In the end, don’t let this happen to you. Having a good sense of your credit history is important in your future financial ventures and improving your quality of life in general. This guide will help you understand why you should repair your credit, how to do that, and who can help you along in this process.
Benefits of a Good Credit History
- Swift Loan Approvals
If you want to start a business or apply for an expensive academic institution, the loan is sometimes your only option. Once creditors or other retailers see that you have cemented a good history for a credit card background, you will be approved for loans easily.
- Get The New Job You’ve Been Applying For
Moreover, a good credit score can even land you a job. Many recruitment agencies carry out credit card checks as part of their recruitment process. If you haven’t shown a good credit card history, then companies might be reluctant to hire you or offer you a raise.
- Starting a New Business
If you want to start a business, you need a good amount of cash. You can get the required cash from a loan. A bad credit repair history will render you ineligible for the loan.
- Improve Your Other Monthly Bills
A good credit background positively impacts your other monthly bills. An electric service provider might also run a check on your credit history to see if you have shown good financial responsibility. You will then be approved for most utility services such as cable, telephone, water, etc.
Many businesses or companies such as—landlords, mortgage officers, job recruiters, and other retailers check your credit history to approve or disapprove your status as a financially responsible person.
The bottom line is that if you want to buy a house, a car, start a business, or get a job, having a good credit card history is extremely important. A bad credit will limit your options.
How Should I Repair My Credit History?
The most realistic way to go about repairing your credit score is to realize that it is a time-consuming process. The best way to manage your credit is to improve it gradually over time. There are some tips you can follow to enable credit repair.
- Get Your Credit Report and Score
The first step in improving your credit score is to get your credit report calculated. The report should be reviewed. It is important to know if your credit score is excellent, good or bad. Only after you have identified the possible concerns, you can move on to the next step.
You can also get your FICO (Fair Isaac Corporation) score checked.
- A Consolidation Loan for Debt Repayment
If you get successfully screened for a consolidation debt, then you can use that loan to pay off your credit debt. The best option would be to pay off the important and higher loans first.
- Payment Reminders
You should make sure that your payment is made on time. This is a major game-changer in improving credit-history. Some banks offer the services of an automated email or text reminders to remind you when your payment is due.
- Plan for Debt Reduction
After you have reviewed your debt report, go through it meticulously. Make a monthly payment plan outlining your goals and requirements for a better credit history. Make sure that your plan includes a budget system and puts the most important loans as a top priority.
- Stop Using Your Credit Cards
Since, you are already mired in the abyss of a bad credit pit with possibly many sneaky loans, you must have the good sense to stop using your credit cards. Once you have successfully managed your loan and credits, then you can only can you resume.
- Intelligent Spending
If there is one thing that we have learned from the movie, “The Confessions of a Shopaholic”, it is that an addiction for rampant consumerism and a penchant for having a bad credit history can never be reconciled in an individual. Sure, you may love to spend, but ultimately that can be more costly than rewarding. So, getting on the track of intelligent spending should be your motto. If you feel that you are spending way too much by burdening your credit card and not paying the money back on time. It is time to stop.
Finding Services for Credit Repair
In the end, the process of repairing your credit is a big undertaking. Many companies offer services to help people fix their credit. Check out some of our favorite companies, and find out what they can do for you.
- The Credit People is a company that has 24-hour account access that will work with you to clean up your credit and raise your score. They've helped thousands of people improve their credit scores and eliminate hidden errors from their credit report.
A good credit history will open many avenues for the improvement of your career and life. It is important to steer away from bad credit practices.
