For years, I was plagued by my poor credit history. I thought I would never be able to fix it or get approved for a car loan. But once I took control of my situation, I was able to rid myself of the negative financial marks that had been holding me back. I had to learn how to manage my accounts better, and get access to my credit reports so I could see what the lenders saw. I had to be patient, as the results weren’t going to happen overnight. During this process, I took the time to learn more about how long different bad credit situations can affect someone.
In today’s world, our credit reports are an important part of our lives. They can be the key to anything from auto loans to getting hired for a great job. But when it comes to monitoring it, people have the tendency to drop the ball. A recent American Bankers report revealed that only 60% of Americans checked their credit report last year. A credit score is detrimental to many aspects of our lives. It helps us get approved for loans, affects the amount we pay in interest on said loans, can be used as a deciding factor by a landlord in a rental agreement or an employer, and by insurance companies when determining your premiums.
Credit is a difficult topic to discuss, and because the subject is often regarded as taboo, there are a lot of myths circulating about how credit works. So, before you accept anything that you hear about credit as fact, make sure you check with a reliable source first.
In today’s world, keeping up on your credit is as essential as keeping track of where you keep your car keys, or any essential household items. If you don’t keep track, you could end up in a position where you’re unable to get where you need to go. When you don’t check your credit, you could find yourself in a situation where you’ve picked out the car you absolutely love and can totally afford, only to be stopped by blemishes on your credit that you either weren’t aware of or forgot about.
If you have challenged credit, you may be facing high interest rates on your current loans. But, luckily, you don’t have to be burdened with these terms for forever. If you can repair your credit, you will eventually enjoy the benefits that come with having a higher credit score, such as prime financing rates.
If you have had a bad experience with debt, you may be inclined towards simply avoiding credit for the rest of your life. But this may not be a good idea. It will be impossible for you to really improve your credit rating without taking on new debt and showing lenders that you can be trusted as a borrower.
Repairing your credit is a difficult but worthwhile endeavor. It will take work and time, so you definitely don’t want to undue any of your efforts by making a mistake that may initially seem harmless. Just be circumspect in your actions, think through your money decisions, and don’t allow old habits to resurface.