Bad Debt Credit Card

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Having a good credit score is essential for day to day living. Let's face it. Most people don't have an exorbitant amount of cash that is readily accessible or liquid. The average person has to borrow money to make certain kinds of purchases. Having a great credit score can assist you with making large purchases on things like a home or vehicle by allowing you to qualify for the lowest interest rate. People that don't have liquid assets must often borrow money in the form of a mortgage or loan in order to afford those big ticket items. Borrowing money can be expensive to do if there is a high interest rate. High interest loans and mortgages can end up costing you a lot more than the principle amount. You can save yourself a pretty penny by maintain a good credit score.

An excellent credit rating could mean the difference between having a great lifestyle and living in a manner that you aren't comfortable with. Before you apply for a loan or a mortgage, you need to be aware of what information is listed on your credit report. A credit report should accurately depict your credit history, good or bad, over the last ...
... seven years. This report is what lenders look at when trying to determine if you are credit worthy at all and what interest rate you are eligible for. Accessing your credit report before you apply for a loan can save you time, enlighten you and save you from an embarrassing conversation with a loan officer or mortgage lender.

There are several factors that can affect your credit score. The length of your credit history, your debt to credit ratio, your payment history, delinquencies and collections are all components of your credit report and help to determine your credit score. A credit report that has information that is inaccurate can hurt your credit rating overall and be very detrimental to your financial wellbeing. If a negative remark is on your report that is more than seven years old or credit activity that was not initiated by you, these remarks need to be addressed and removed.

The issue that hurts many people's credit rating is credit cards with bed debt. If you owe a lot of money on your credit card and have a limited amount of credit available, this will decrease your credit score. By paying your credit card balance on time every month, you can avoid delinquencies, higher interest rates and late fees. If you have not paid your credit card bill for at least 180 days, the credit card company can issue a charge off. This means that they have written off your debt as a loss on their records. This does not mean that you are not responsible for paying the debt however. The credit card company will still report this to the credit bureau and it will appear as a negative remark on your credit card.

CreditElves has been helping people with these problems for many years. Visit creditelves.com to find out more about how you can repair your credit.