UNDERSTANDING BAD CREDIT
WHAT IS BAD CREDIT
There is nothing good about bad credit. It is the exact opposite
of good credit. While good credit helps you qualify for car and home
mortgage loans, bad credit could keep you from being able to buy
these large-dollar items. It will also keep you from qualifying for
credit cards and may possibly hinder your ability to rent a house or
apartment.
HOW DID I GET BAD CREDIT
Getting Bad Credit - It is very easy to get bad credit. Bad credit
ratings happen when a person does not pay back money borrowed on time
or when that person simply doesn't pay it back at all. There are
varying degrees of bad credit. A person is not automatically given a
bad credit rating if he misses a payment or is late a time or two.
However, if a person is continually late or he does not make a
payment for several months, his credit rating will be affected and
could possible hurt him in the future.
HOW DO I FIX BAD CREDIT
Fixing Bad Credit - Credit ratings, even bad ones, can be improved
and fixed. Depending on the situation, with responsible credit usage
and prompt payments, bad credit can turn into good credit over time.
The First Step: no your rights
The Second Step: is to understand what your credit rating is by
pulling your credit report. Credit reports are available through one
of the three major US credit bureaus: Experian, Equifax, and
TransUnion. Understanding your credit report will help you determine
if there are errors. It will also make you aware of what steps you
need to take to improve your credit.
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