Eating Healthy for Life

Good credit is vital to getting a good small business line of credit. Or an unsecured personal loan or a small business loan.

That said, having a bad credit score can hurt you in other areas of your life as well, not just when you are trying to find a credit card, a home loan, or even a small business loan.

For example, employers often can and will run credit checks on job applicants, and your bad credit score could be a deciding factor in receiving the profession you applied for or if it goes to a similarly- a skilled prospect having a stronger credit rating.

If you want to rent real estate, or buy or lease a car, or even buy a new mobile phone -- you guessed it -- an unsatisfactory credit score can easily harm you.

What Can Hurt Your Credit Report?

Maxing out your credit cards - try not to borrow any more than fifty percent of your maximum credit allowed. When you go more than this amount, it will probably hurt your current credit rating. Bottom line, never charge your charge cards to the maximum.

Late payments -- late payments unquestionably are damaging to your current credit. Monthly payment background accounts for roughly thirty five percent of your credit scores. To make sure that you don't skip your payment, go on autopilot - set up to have all of your current monthly payments automatically withdrawn out of your bank account. In this way, you will never have to fear that your payment has been made on time.

Applying for a number of credit cards and/or financial loans -- applying to many credit cards is a warning indicator to financial institutions (in the event that you're going to submit an application for more than one particular card account, it has been mentioned you do so all in one day).

Shutting down long-standing credit card accounts -- loan companies prefer to be able to observe a prolonged payment historical past. The longer you have had a credit card account available and also have made on time monthly installment payments, the more this improves your credit .

Having a tax lien .

Filing bankruptcy.

So, What's A Decent Credit Score?

A score higher than 700 is normally considered superior.

600 to 690s - alright, but not really ideal. These days, because of tightening credit requirements, may likely not really always be adequate to get you approved and certainly not for the ideal interest rates and terms.

Beneath 600 - you're regarded as a high credit risk.

Below 550 - you really are viewed as a very a bad credit risk.

Overall, prior to things getting so bad - check with a consumer advocacy legal professional and negotiate with your creditors. This approach can save you from a disastrous credit score which unfortunately affects you for up to a decade.