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Credit
Credit
History
Credit Insurance
Credit History - Why it is Important
An individual that has, or wants to have, a 'good credit rating' requires
some degree of a credit history. Your credit history refers to your past
history of borrowing money, repaying that money, your employment history,
bill payment history, and other factors. Also included in one's credit
history is any history of filing for bankruptcy, of being sued, or of
committing a criminal offense.
Your credit history is reflected by your
credit score. There are three
major credit reporting agencies in the US, and these are the sources from
which creditors, employers, landlords, and other businesses access your
credit scores and credit history. These documents are called credit
reports.
A person who has never borrowed money has no credit history, for example,
young people just going out on their own. Building a good credit history
is extremely important for all individuals, as their credit history will
impact their ability to borrow money, to secure housing, and to secure
employment. In addition, one's credit history greatly impacts the cost of
borrowing money. Those with a good credit history will pay less in
interest and fees on money borrowed than those with a poor credit history
or no history at all.
Another group of people often not thought about as having no credit
history are many
seniors, particularly women. The reason for this is that
in many cases, a older woman's husband has taken care of the finances,
debts, payments, and other related issues. If a woman finds herself
widowed or divorced, she may also find that she has no credit history and
no credit score.
There are methods that can be used to begin to build a credit history.
Inquiries can be made at local grocery and department stores for charge
cards or credit cards, as local businesses are often more willing to offer
individuals credit than are major lending institutions.
Another effective way to begin building a credit history is to take out a
secured credit card. This is a credit card that, in effect, acts much like
a debit card. One pays in advance for the ability to use the card. For
example, one could deposit $500 onto the card, then use that $500 over
time. This allows you access to major credit cards, at no risk to the card
issuer.
If you find yourself in the situation where you have no credit history to
speak of, talk to a professional about how you can start to build your
credit score. Your local bank is an excellent place to start. If they do
not have counselors to help, they can likely direct you to local programs
or people who can help.
Credit is important - good credit is especially important! Start building
your credit history today.
Contact us today!
Click here for a
Free online
credit evaluation - No Cost, No Obligation!!
Call toll free at 1-866-524-2328
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