Maintain Or Achieve Good Credit

By Author: Alisdair Cosgrove
Total Articles: 184
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Until recently many people were not aware of just how important it was to have a decent credit history and rating, but since the onset of the global credit crunch, which has resulted in tighter credit conditions and increased difficulties in the financial markets, more and more people have realised that having damaged credit can make life extremely difficult in terms of finances. If your credit is damaged your chances of getting any form of finance are very slim, and even if you do get finance you will pay a very high rate of interest compared to those with good credit.

Whenever you apply for finance the lender will run a check on your credit to assess whether you are a low or high risk. If your credit is good then you are considered a low risk, and you stand a good chance of getting the credit that you are looking for. However, if your credit is damaged and your rating is low then you will be considered a high risk, and the chances of getting the finance you need - especially in the current climate - are very slim, which could create difficulties for those looking for finance such as car loans, mortgages, loans, and ...
... credit cards.

Anyone that is looking to maintain their good credit rating just needs to follow a few simple rules. This includes not missing bill payment and debt repayments, making payments and repayment on time and for the requested amounts, and not applying for too much finance in a short space of time. It is also worth checking your credit report on a regular basis to monitor your rating and ensure that it is on track, as well as to ensure that your credit does not get affected by inaccurate information or due to suspicious activity.

There are lenders that offer finance specifically for those with bad credit, such as credit cards and loans. If you are able to get one of these and you then make responsible and timely repayments on it you can slowly improve your credit. For example, you can get a bad credit credit card, use it on a regular basis throughout the month, and then repay the balance in full each month, which means that you can also avoid paying interest, which can be high on a credit card for those with damaged credit.

If you have damaged credit and you apply for finance there is a strong chance that your application may be rejected. If this happens you must make sure that you don't reapply for credit straight away, as this could cause further damage to your rating. Instead, wait at least three month before you make any further applications.

Whilst you are trying to improve your credit it is important that you keep a close eye on your credit file to ensure that you can see what sort of progress you are making. You can do this by ordering your credit report on a regular basis and checking on your credit score. This will also enable you to ensure that there is no outdated or inaccurate data on your report that may be causing problems for you.
Alisdair Cosgrove is a freelance writer specializing in personal finance. You can read more of his work at www.JSNet.org for credit card comparisons including cash back credit cards and also offers a comprehensive list of hotel rewards credit cards. You can read more about credit cards from his on site article, 'An extra credit card?'.