What is Credit Worth To You
What is credit worth to you. Instead think of how credit could
help change everything about your whole life. As we grow up, we
hear about this topic of credit. We don't quite understand at
that point what it is or even how it works.
Credit it a very important tool and needs to be constantly
maintained or your credit score can change quickly if your
credit isn't maintained properly. Credit is a line of invisible
cash that a financial institution gives you, if your past and
current credit scores show your a reliable borrower. when I say
reliable, that means someone who pay's there bills on time every
month, keeps credit cards under there maximum credit and keeps
them paid down every month.
There are many ways to obtain credit. A couple sources are
secured credit cards, secured loan. It's even getting to where
your fast cash title loan companies are by law required to
report your payment history, since they change a substantial
interest rate on those loans.
Even though still, just don't go to a fast cash loan company.
Just cause they report doesn't mean Visa or Mastercard are going
to look you up and tell you what a wonderful job your doing and
offer you a $10,000.00 line of credit, things go much deeper
than that.
I myself had a lovely credit score back in 2000. Everything was
going well, I couldn't ask for much more. My credit was in line
where it needed to be and life was well. I was happy and so were
my creditors. My score was around 720 give or take a few points.
I used my credit cards often and kept my credit line paid down
to keep my line available.
What your about too hear is why everyone says keep the credit
cards paid down and don't buy with what you can't pay off in a
give months time. I had roughly around 8,000.00 in credit
through visa and mastercard, life was great. I was slowly
building credit and was hoping the following year my scores
would be inline for my biggest purchase a home.
It was the beginning of 2000 all was well, work was plentiful
and things were for once looking up for me and my wife. We just
got through paying off the bills for the birth of our daughter
back in 1998 and was getting ready to start searching for our
new home. Then disaster struck, I was laid-off from my job
around october of 2000, no worries at first, it was normal
around that time year for this to happen, like every year, just
meant had to hold off till spring. The following month is what
hit hard.
Thats right September 11th 2000 it hit everyone like a ton of
bricks. my credit dropped really fast. I lost my job for good.
the plant I worked at closed up shop due to a big ressesion
months after the trade centers were attacked. Work slowed and
thousands of families lost jobs and lives to the un thinkable,
being invaded by enemies on our own soil.
My credit score began dropping 20-30 points here and there, I
had trouble paying of exsisting credit cause the jobs weren't
there to earn a income. creditors were calling asking for there
monthly payments and I was without a job. Couldn't even make the
monthly minimums is how bad it was. late payments began to
destroy what i'd built and in just around 1 years time my credit
was gone. My scores dropped to around 500 out of 800 I was
hurting really bad, I had the job to pay my bills before but now
that nice paycheck was gone, my bills hanging out there unpaid
and unable to find work to keep them paid every month I crashed
hard a developed the attitude of forget them, they'll get paid
when i get paid.
This didn't help as i found my credit spinning out of control.
Collection companies had already been calling, sending mail to
collect what I owed.
law offices started getting into the mix, threats and lawsuits
were in the midst and it began to go a route I never wanted. My
credit was dried up and no one wanted to touch the idea of
giving credit to a jobless idiot. Did I file bankruptcy"NO" I
believe in paying what I owe.
All though this didn't mean my credit cards or loans were
getting paid anytime soon. I was obligated to pay them and that
is what I was going to do. Finally this year 2005 bills were
getting paid off, credit cards I had then were being paid down
and off. All though my credit still isn't as high as i'd like
it, it's slowly recovering. I'd recovered sooner if i'd really
put more effort into it but once you hit rock bottom, you begin
to see reality as it really is and the healing and repair
process can begin to take it's course.
The moral of the story is, don't build a small credit line and
start out living your means. We all do it but learn to control
your wants and needs. Credit comes in really handy when there is
a necessary need for it. Don't buy things you can't pay off in a
months time or couple months. Keep your credit fresh buy and pay
off. View your credit report at least once a month. make sure
everything in your credit report is accurate. Pay all your
credit card bills on time this is very important these days.
There are much higher late payment fee's and missing 1 payment
can hurt your score pretty good. Just cause you make $50,000.00
a year don't live like you make $100,000.00 cause the moment you
do It will begin to unravel on you.
Just use your brain, don't apply for every credit card offer you
see cause every inquiry drops around 15pts off your score. Use
your credit wisely and pay your credit card and loans ontime
every month and everything will fall into place. Don't get
crazed about your $10,000.00 line of credit and all will be fine.
Here is a site with some good credit tips and Stories of others
brush with the world of credit they have some interesting facts
and things that can really help if used properly.
www.The-Credit-Source.com
www.A-Credit-Resource.com