Your credit is the key to success.
Do you want to purchase a house, car or maybe even pay for your children's college? Your credit history is the most important tool when you are ready to take these financial steps. When you use credit successfully, you will enjoy great financial advantages in the long run. Benefits of Good Credit
Your credit report is a summary of your financial activities and includes information about your credit accounts and/or loans, pending balances, and your payment history. This information is provided by the companies you have a financial relationship with. The information itself is organized and filed by the credit reporting agencies.
The information on your report is confidential and is only provided to other people or companies that have a legitimate reason to request this information, such as:
Companies where you have an account or have applied for credit
Employers where you have applied for work or for promotion/retention purposes
Insurance companies to open a policy or renew an existing policy
Federal agencies review your financial status to determine eligibility for federal benefits
It is very easy to skip a payment. But skipping payments may lower your credit score dramatically.
It is important that your history show reliability and stability. When you open too many accounts in a short period of time you risk overextending your ability to repay your debt.
Review your credit report at least once a year to ensure that all the information reported is correct.
If you are having trouble making a payment, call the creditor. More often than not, these companies have special programs that will help you during a difficult period and avoid negative reporting.