Want to know more about where your finances personally stand? Maybe you are looking to invest in a new home, a car, furthering your education, or need a credit report for a potential employer, whatever the reason, make sure you know how your credit is being affected and by what.
Credit reports show where we stand between very poor/bad credit all the way up to excellent and very good. With very poor normally being under a score of 580 and excellent being over 720, there is also everything in between. A poor score is 580 to about 620, a fair score is 620 to 680 and a good score is about a 680 to 720 although these numbers may vary according to the institution conducting a credit search. Most investments and loan opportunities look for people with a credit score of 620 or higher an indication to them that you are serious about paying your bills on time.
Things that can negatively affect your credit include previously defaulting on a loan and having it sent to a collection agency even when you are now taken measures to pay it off. Other circumstances include neglecting payments on phone bills, internet, utilities and so much more. Virtually anything that you have to pay monthly- any account that you pay on- can negatively affect your credit if you do not take measures to pay what you owe. That is why it is important to budget finances and save money for bills when you need it.
Potential employers also often look to credit reports as an indication of whether you will be a good employee or not. While your credit might not speak to how hard you may actually work, employers often use credit reports to judge how responsible you may be and how financially stable you are. So the next time you borrow money consider whether you have the means to pay it back so as not to mess with your credit score. The next time you feel as if you will be late on paying a bill, try calling the financial institution- credit card company, phone company, etc.- and see about ways you may be able to delay a payment without a risk to your credit score. The more you know about your credit the more it works out for you. So check out your credit today by signing up for free reports online- make sure the company is legit, or by asking your bank whether they provide free credit scores. Make sure you keep yourself up to date and protect your credit from reaching a poor level and decreasing much of your prospects.
Image credit: free-credit-report-gov.net