Your credit score is important. It can even have an influence on whether you will be successful with a job application because every employer will be able to access it if required.
Obviously the recession resulted in many people suffering, often defaulting on debts and seeing their credit scores fall as a result. If you have suffered this fate or if it is something you want to avoid, you need to follow some simple rules to understand the rules of the credit score game.
Tips to Understanding the Rules of the Credit Score Game
Pay on Time
If you fail to meet a bill on time you may find that you face a penalty, and your forgetfulness will result in a blemish on your credit history which will stay there for seven years. It may not be forgetfulness of course; you may be unable to pay.
If you have only been a few days’ late you may avoid the blemish, most lenders would not act for 30 days. If you can’t pay then you will certainly be getting that blemish.
Medical Problems
They tend to be unexpected by definition, at least initially. If you have no emergency fund it is likely that you will find difficulty in paying. That presents problems, certainly when you require ongoing follow up treatment. Your credit history will suffer too in addition to your credit score.
When should you consider freezing your credit report? Your credit score is one of the keys to your finances. Companies use it to determine what interest you will pay, if you are even qualified for a loan, use it to make hiring decisions, and even use it in determining how much your