Good Credit Is More Important Than You Think

A responsible adult knows that he has to maintain a satisfactory credit score, because this is a crucial financial tool that can dictate his finances. A person with bad credit may not be able to buy expensive products (such as home appliances), especially if he does not want to touch his savings. Sometimes, your credit score is the one major factor that can make your purchase push through or not. A person with a very low credit score may not be able to get a loan from a bank. A person with great credit, though, can get enough loans to pay for such big purchases (and maybe even minor ones.)

A person who is faithful at paying bills on their due date every month will maintain good credit. And a person with good credit can convince banks to issue loans for major purchases that he may not have enough cash for.

For those who would like their poor credit history to improve (so they can qualify for major loans in the future), they can do two things to hasten the credit-building process:

Look into the Accuracy of Your Credit Report

It is vital to examine your credit report annually, looking for mistakes in every item included in it. Annualcreditreport can provide you with a free credit report. You may opt to get one credit report from each of the three major credit bureaus, or choose one of them only. It is recommended that you select only one at the moment – if you cannot find mistakes, then you can ask for the credit reports of the other two credit bureaus at a later time in the same year. This way, you can examine a credit report every four months at no charge. It is probable that, if you find mistakes in the first credit report, that other errors will crop up on the other credit reports too. If you do find mistakes, inform the last two credit bureaus of the correct data that should be in your credit reports. Their website will have the contact information you require. If you really cannot find errors, you may keep checking with the other credit bureaus every four months so that you stay on top of the situation. You can even learn what your credit score is if you pay a certain fee. Your credit score can help gauge your progress over the year.

Begin Paying Bills When They are Due

If you were negligent at paying bills on time in the past, you should now make it a point to pay bills on schedule. Examine the bills when they come so you can be sure you received accurate ones. Use a pocket calendar to monitor the due dates and minimum amount you need to pay, so you can take a glance at them every so often when needed. Paying bills regularly will help you build good credit. Even one late payment can wreck your credit history and brand you with poor credit. If you keep paying on schedule for a series of months, lenders will start offering you credit again. Do not grab at the first available offer – rather, wait for better ones to come along so you do not run out of credit limits immediately.

Having good credit has its benefits – so do try to repair poor credit as soon as possible.