In the balance of everything, credit scores might not seem like such a big deal. You may have missed a payment here and there on your cell phone, but you made the rent payment on time. Unfortunately, all the good payments in the world can be instantly blotted out with a few bad hits to your credit. It can limit your ability to obtain certain services, credit card offerings, and even make it impossible to secure a home lease. It’s important to address credit issues as they arise to keep your score healthy.
Your credit history can affect multiple areas beyond simply qualifying for a loan.
Anytime you apply for loans and lines of credit the lender is required to consider your credit worthiness before giving you the seal of approval. Having a great job is a plus, but if you’ve been forgetful in payments leading to a slow or late pay history, it lowers your chances of approval. Even small problems in your history can lower your score enough to reduce the line of credit you may have received otherwise. This can make a huge difference when it comes to large purchases
Food, shelter, utilities, and things like cell phones are taken for granted. You assume that since you work hard everyday and you have the money to make payments, you should be offered a lease, phone and basic utility services without a hassle. It gets increasingly harder to secure what you might consider the basics of life if your credit score slips. You’ll find amounts of deposit skyrocketing to levels you can’t afford. You may have to settle for a home or apartment that is in an undesirable area due to poor payment history. Your credit score is one of the major factors that determine your ability to maintain payments in the credit provider’s eyes.
Avoid the Negative Reports
Everyone should try hard to maintain a good pay history, but sometimes things happen and payments are late or missed. It’s equally important to get those issues resolved as quickly and completely as possible. Every negative hit that your credit score takes brings down your credit worthiness. Reach out to creditors and attempt to arrange a payoff for any old debts that you have. It doesn’t erase the bad mark for the moment, but it doesn’t continue to show as being a debt you haven’t taken care of.
If you know you are going to be late, call the creditor and try to make an arrangement on the payment so that it doesn’t negatively impact your credit score. If you seem overwhelmed by bills at a certain time of the month, then work with a those companies to see if you can move payment dates to evenly spread them out over the month. Many are willing to do this if you pay a pro-rated amount of a bill. You’ll find that they are willing to be accommodating if it means that you can get on track to paying without reminders. Take control of your credit score health and get back on track.