Repair Your Credit, Build Your Survival Foundation
Why is it important to have good credit?
With today's society becoming more and more business oriented,
establishing and maintaining good credit is vital if you plan to
do any of the following:
1. Apply for employment 2. Rent an apartment 3. Open a bank
account 4. Setup an account with public service or the telephone
company
It used to be that establishing good credit was important only
if you planned to buy a home or car, but not anymore. The
simplest task, such as applying for employment could very much
mean that you need good credit.
Having bad credit could impede your ability to survive.
This is sad to say, but it is a proven fact that people have
been turned down top quality job positions just because of their
credit rating despite the fact that that particular job could be
exactly what a person needs to fix their credit.
That's a scary catch twenty-two don't you think?
Ok, I'm caught in that scary catch twenty-two, what do I do?
Start by requesting a copy of your credit report in writing. You
are entitled by Federal Law to receive a free annual credit
report.
There are three major credit-reporting agencies that you need to
contact, you can run a search on the internet or find their
information in a phone book.
If you have already received a credit report for that year, you
may also use any letter of credit denial by sending in a copy of
that letter within 60 days of its receipt with your written
request.
Be sure to include a copy of your state issued ID, proof of your
address and your last known addresses for the past 5 years. It
is very important to include a copy of your social security card.
What does is mean to have good credit? Who cares who sees it?
Unbelievably, your credit report is public information to
anybody where you are asking for a line of credit.
Any time you apply for employment, an apartment, or attempt to
make a big purchase, you are asking for credit and permitting
the potential creditor to view your credit report. Although your
credit report does not reveal a personality diagnose, it may
just as well, considering it is through your credit report how
others (potential creditors) will perceive what kind of person
you are.
Businesses look into your credit report and determine by your
ability to pay and follow through on your promises what kind of
person you are. Do you adhere to your promises? Are you stable,
do you follow through on payments? If so, then you most likely
are a good and reliable person. You may be worth giving a chance
at that perfect job, or residing in that particular community.
What about good people with bad credit? You may be a good
person, you may even be the most considerate and compassionate
person alive; however, if your credit report shows a late
payment or no payment on an account at all, your entire being
could be perceived as not reliable, unstable and untrustworthy.
Prepare yourself to deal with a lot of paper work and phone time
once you are ready to repair your credit. What does this mean?
How can I protect my reputation?
What this means is that it is time for you to fix your credit.
Your income may be null or limited, that's ok, there is still a
way to save your personal reputation and open more doors of
opportunity. Once you receive your credit report(s), contact the
creditors listed and make payment arrangements, even if it is
just $1-$5 a month. Doing this shows your willingness to get
back on track, it show that you are putting effort towards
establishing stability and responsibility.
Whom can I turn to for help?
There are many resources available to assist with credit repair,
make use of your library or the internet. Most credit repair
agencies offer free services, take advantage of their offers and
assistance. Building your credit is more than being able to make
a big purchase, it also means you are establishing your personal
reputation and setting your survival foundation.