Credit Education

What is bad credit?

Bad credit means that you have an unfavorable credit score. Having an unfavorable credit rating or unfavorable items on your credit report makes it difficult and expensive to obtain new credit. When you find yourself falling behind or begin to continue to make the minimum payments on your credit cards, you should start to review your credit report to ensure you do not start lowering your credit score.  It is a wise choice to begin to review your credit report at least twice a year. My Professionals can examine your credit report, assist you on how to maintain a high credit rating and provide information on how not to fall into the credit card debt trap. 

Credit Reporting Agency

Credit reporting bureaus are companies that make money by selling financial information to lenders. Everyone who has every had a credit card, taken a loan or even applied for a credit card or a loan will have a credit file with each of the major credit reporting agencies. A credit report lists: personal data, employment, debts and credit cards. The information is taken from credit applications and from reports your creditors make about how well you meet your obligations.

Your Credit Report

A credit report details your financial life. It lists; Social Security number, current home address, past addresses, employment, current  loans, past loans, lines of credit,  credit cards, mortgages, and all other debts. It shows what accounts are paid in full, judgments, which are late, which are in collection, as well as liens against you and if you have ever filed a bankruptcy and if so how long ago.  Every financial transaction that has been made is either detailed on your credit report or has been before a certain period of time and has already been removed.  Whenever you apply for a loan or credit card, your credit report is examined by the potential creditor. The report rates your financial status, and the creditor uses it to decide how likely it is you will pay back money you borrow. If your credit report shows many delinquent accounts, a bankruptcy, or an extensive amount of loans, you are a bad credit risk. Creditors, employers, landlords and insurance companies all use your credit report. Since you are judged almost solely on the basis of your credit report, you need to make sure it is accurate. We can help, contact us today!