If you think bad credit is no big deal, you might be in for a rude awakening.
In today's consumer society, credit isn't really optional. It's the means by which we buy our houses, guarantee our contracts, prove our financial reliability, rent our cars, buy our phones and much, much more. Good credit means doing all those things easily and with lower interest penalties. Bad credit means being charged more for many of life's necessities -- and sometime being unable to get them at all.
Bad credit is also hard to shake. It follows you to unexpected places. It can undermine you when you can least afford it.
This week, we're going to discuss how credit goes bad. We'll review the most frequent financial missteps we make and how those mistakes impact our credit. We'll talk about credit reports, credit scores, the sometimes unseen rules governing your credit score and how these numbers influence your daily life.
We'll also talk about the negative financial effects associated with bad credit: the inability to get a mortgage, a credit card with favorable terms or a business loan.
We'll also discuss the more unexpected places bad credit can haunt you: job searches, utility bills, insurance premiums and apartment leases.
Most importantly, we'll provide you with a detailed two-part plan to fix your damaged credit. It will take you through all the most important steps to take: requesting free credit reports, contesting bad information, pursuing new strategies to build positive credit, avoiding credit repair scams and dealing with aggressive debt collectors.
We want you to understand that while bad credit hurts (and can hurt badly), it doesn't have to stay that way. Negative credit information, if dealt with properly, will stop penalizing you eventually. While it might take years of painstaking work, you can emerge free and clear of the consequences of poor credit. You can make life much easier, and much less expensive, too.
Gathering the right information is the first step toward repairing your credit. We believe you'll find this week's articles valuable, informational and actionable, and we hope they serve as a springboard into your recovery from the effects of bad credit.