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:
- Apply for employment
- Rent an apartment
- Open a bank account
- Set up an account with public service or the telephone company
In the good old days, having 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 scores.
Having bad credit could impede your ability to survive. This is sad to say, but it is a fact that people have been turned down from 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 should I do?
Start by requesting a copy of your credit report in writing and comb through every detail to check for inaccuracies.
The Federal Law grants you a free annual credit report. There are three major bureaus that you need to contact: Experian, TransUnion, and Equifax.
If you already received your annual report, you can also use any credit denial letter. Send a copy within 60 days of its receipt with your written request to get your credit report. Include copies of these documents:
- Copy of your state-issued ID
- Proof of address and the last 5 known addresses
- It’s also very important to include a copy of your SSN 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. Whenever you apply for an apartment or attempt to make a big purchase, you allow the potential creditor to check your credit history.
Although your report doesn’t reveal a personality diagnose, it may affect how others (potential creditors) will perceive what kind of person you are.
Businesses look into your report to determine what kind of person you are through your ability to follow through on your promises.
- 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- you could be perceived as not reliable and untrustworthy. Prepare yourself to deal with a lot of paperwork 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 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.