Credit Repair Services and Information
Credit History - Why it is Important
Credit
Credit Insurance
An individual that has, or wants to have, a
'good credit rating' requires some degree of a credit history. Your credit history
refers to your past history of borrowing money, repaying that money, your employment
history, bill payment history, and other factors. Also included in one's
credit history is any history of filing for bankruptcy, of being sued, or of
committing a criminal offense.
Your credit history
is reflected by your credit score. There are three major credit reporting agencies
in the US, and these are the sources from which creditors, employers, landlords,
and other businesses access your credit scores and credit history. These
documents are called credit reports.
A person who has never borrowed money has no credit history,
for example, young people just going out on their own. Building a good credit
history is extremely important for all individuals, as their credit history
will impact their ability to borrow money, to secure housing, and to secure employment.
In addition, one's credit history greatly impacts the cost of borrowing
money. Those with a good credit history will pay less in interest and fees on
money borrowed than those with a poor credit history or no history at all.
Another group of people often not thought about as
having no credit history are many seniors, particularly women. The reason for this
is that in many cases, a older woman's husband has taken care of the finances,
debts, payments, and other related issues. If a woman finds herself widowed
or divorced, she may also find that she has no credit history and no credit score.
There are
methods that can be used to begin to build a credit history. Inquiries can be
made at local grocery and department stores for charge cards or credit cards,
as local businesses are often more willing to offer individuals credit than are
major lending institutions.
Another effective way
to begin building a credit history is to take out a secured credit card. This
is a credit card that, in effect, acts much like a debit card. One pays in advance
for the ability to use the card. For example, one could deposit $500 onto
the card, then use that $500 over time. This allows you access to major credit
cards, at no risk to the card issuer.
If you find
yourself in the situation where you have no credit history to speak of, talk to
a professional about how you can start to build your credit score. Your local
bank is an excellent place to start. If they do not have counselors to help, they
can likely direct you to local programs or people who can help.
Credit
is important - good credit is especially important! Start building your
credit history today.
If you fear that you already have a credit history that may contain negative
information, find out. Contact a credit repair services professional, submit a free credit evaluation online, or request copies of your
free annual credit reports.
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