Bad Credit Debt
In today's world, there are a lot of things that its very
difficult to live without. One of them, is credit. Can you
imagine trying to save up for a car until you had enough cash to
just pay for it outright? Do you think you would be able to pay
for college tuition and study at the same time? Who would ever
own their own home? A life without access to credit when you
need it will be severely limited in any number of ways.
Everyone, at some time, will be looking for a loan.
If you apply for a loan from a commercial lender, they will do a
credit check. It doesn't matter what form the credit takes, it
could be a credit or store card, a mortgage, auto finance or a
loan to start up your own business. In all of these situations,
whether or not you are approved will depend mainly on your
credit score. Applying for a loan is not the only time your
credit score will be used. Also if you apply for insurance, to
rent or lease a home, or even when applying for a job, in all of
these situations, your credit rating will be used.
What is your credit score?
Your credit score is a rating system used by financial
institutions to assess the risk of giving you credit. It will be
based on information such as your address, salary, how much debt
you currently have, how well you meet your repayments, whether
or not you've ever been made bankrupt. All of this information
will be processed and used to give you a specific score. Lenders
will then set their interest rates at higher levels for people
with lower scores, and decide on a cut off point, where people
with a lower score will be denied credit.
You have a right to know the reasons why you have been denied
credit. If you have been denied credit because of information in
your credit reference, then you can get a free copy of the
report. You can also get a free copy of your report once a year
from each of the three national credit reporting companies.
Also if there is an error in your report you can notify the
reporting company of this and they have a duty to amend your
report and make sure it is accurate.
Your credit report is used for many important decisions, so you
should make sure at least annually, that it is accurate