These days it’s very important to have a good credit rating. Otherwise, you can’t get loans or mortgages or make the financial progress you want to make. You want to make sure you have the means to build your business or improve your home or send your children to college if these are your goals.
You also have to make sure that no one is stealing your information and using your credit to charge things. There are many identity thieves out there today who get hold of your financial information and ruin your credit rating before you even know what’s going on.
Therefore, it pays to go to websites to check your credit rating. You can do this for free once a year, so it’s well worth the investment of your time. You’ll get a free copy of your personal credit report. Look it over carefully. As with bank statements, you don’t want to presume all the information is correct. Look for errors. They may be accidental or they may show that some fraud is going on. In any event, report whatever you find that doesn’t look quite right.
For your part, you want to be paying your bills on time. Bill paying reliability is a significant percentage of your credit report, just over one-third of the total. It’s better to pay a little something on a bill or call and negotiate the amount you’re going to send rather than to just skip paying a bill or paying it late constantly. Don’t give up if you see that you have mismanaged your finances and have a bad credit report.
Call your creditors and begin to make amends. Determine that you’re going to be very responsible from now on and not buy anything that you can’t pay for within the month that the bill is due. You see that your past mistakes have brought you to a place where you feel powerless. Now you can claim your power again by building up your credit score so that you have nothing to be ashamed of.