A credit report is a detailed history of your credit, what debts you owe and how reliable you are when paying back lenders. Your credit report includes your name, address, date of birth, your previous residences, and your Social Security Number, as well as any credit accounts you currently have open, closed credit accounts from your past, accounts in collection and more. Think of it as your financial report card.
Today’s economy runs on credit. If you want to get a mortgage loan for a house or a student loan to pay for college, or if you just want to put your lunch on a credit card, a company is extending credit to you.
Your creditworthiness is defined by your three-digit credit score and is the key to your financial life. Good credit can be the make-or-break detail that determines whether you’ll get a mortgage, car loan or student loan. On the other hand, bad credit will make it more difficult for you to get a credit card with a low interest rate and it will make it more expensive to borrow money for any purpose, says Liz Pulliam Weston, author of “Your Credit Score.”
But even if you’re not in the market for a loan, good credit can have a major impact, Weston says. “Your credit information can be a factor in whether or not you can rent a nice apartment, how much you pay for insurance or whether or not you can get a job,” she says. Landlords, insurers and employers frequently use credit information as a litmus test to see if the people they are dealing with are reliable and responsible.
Bad credit can suggest you’re a risky bet. While bad credit may only show the details of how you deal with debt, some will extrapolate the characteristics from your financial life to other situations and assume that your bad credit implies that you may be just as irresponsible driving a car, taking care of an apartment or showing up for a job, Weston notes.
Good credit can signify that your financial situation and the rest of your life is on the right track.
This is a frequently asked question with a surprisingly simple solution. If you know your creditworthiness needs improving, there are specific steps to restore it. You’re not alone. Millions of people each year get into trouble with their credit. It’s not always easy to maintain a good credit score when modern life can be so fraught with expenses, emergencies, distractions, inflation, and job insecurity.Follow these simple steps and you’ll discover that an effective credit repair process can be started right away. Within as little as a month’s time – your credit score can rise significantly.
If you decide that it’s best to have a credit repair company working for your behalf, all you have to do to get the ball rolling is to decide which company to use. Look for the following criteria when choosing a good company:
Your credit is essentially your financial reputation and because it is used for so much, credit repair services is absolutely worth considering if yours is bad. Often times lenders require a score of 600 or more in order to get a loan, and the better your credit is from there, the lower your interest rate will be (meaning you can save hundreds or thousands over the life of your loan).
It doesn’t take much to hurt your credit score, so working with someone to understand how to care for your credit is also a helpful tool to those who are just getting started using credit, or those who are trying to build it back up after a few mistakes.
With credit, it's never too late to change your habits and your score. Your credit history goes back 7-10 years, which often feels like a long time, but the sooner you start making good credit choices, the sooner you'll start seeing your score increase.