Tuesday, December 4, 2012

Rebuilding Credit has Positive Outcomes for the Future

Credit cards Français : Cartes de crédit Itali...
 (Photo credit: Wikipedia)
Bad credit scores seem to be a growing epidemic, whether it is from job loss, injury or illness, or perhaps from overspending. When funds are limited, many people are turning to their credit cards to finance just about everything. They are using them to pay the rent and mortgage, car payments, and other household bills that require payment. 

While it may seem like a good idea at the time, over usage of credit cards can have a negative effect. Some individuals are racking up their credit cards to pay other bills and in turn, they are unable to pay the credit card bills when they arrive. 

Neglecting credit card payments can result in bad credit. Some may not think a credit score matters, but if you have ever wanted to finance anything, such as a car, home, or if you happen to need a loan, that score on your credit is going to make a difference. Banks tend to turn away from people holding a negative credit rating, even if your credit issues are a thing of the past. Circumstances and specific situations don't matter to them. They consider anyone with bad credit to be high risk. In many cases, several people are going without because banks and other financial institutions won't take a chance on them. 

It is very important to try and keep your credit untarnished, but in some cases, it just isn't possible. There are some people who have no choice but to use their credit cards. Unfortunately, the time did arise for me. I had no choice at the time. Due to job loss, I had to use my credit cards for groceries and other necessary bills. Once I found employment, it was difficult to catch up with current and past due bills. Some bills went unpaid and those events can leave you with less than perfect credit. I knew I had to take care of it so I decided to have rebuilt my credit. 

Some may not realize the embarrassment that is involved when you have bad credit. Some people may feel ashamed. They may feel that others are judging them because of it. That is why it is so important to do what you can to clean any discrepancies you may have. Once your credit has been rebuilt, it will give you a whole new sense of pride. That is why I had rebuilt my credit. 

Regardless of the reason for bad or less than stellar credit, the results will usually be the same. Taking care of what you can and getting your credit back to par is essential. It will not only affect you now, but there will also be repercussions in the future as well. If for some reason you feel that you are unable to fix the problems yourself, there are many institutes that have trained individuals that will be more than willing to help you repair rebuild and fix any credit problems that you may have. 

Carol Roberts freelance writer and mother of two. I have been currently writing for a home finance blog as well as a parenting blog. I know firsthand how important it is to have healthy credit, that's why I had rebuild my credit.

1 comment:

  1. I very much agree. Its amazing how much having bad credit can hurt you in your life. If you have a mortgage you can be paying literally thousands extra due to higher interest rates. Its because of this I strongly suggest getting your credit repaired quickly through a reputable company like Lexington Law.


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