What Is Good Credit?
By : Javier Melendez
What can good credit truly mean for you and your family? Well, it means that a variety of financial doors can be opened for you where they are closed for people who have a bad credit score. If you actually have bad credit, it is important for you to work your way towards good credit once and for all. If you have a good credit history, it is vitally important to maintain that credit at the same time. When you know how to look after your credit activity responsibly to ensure that your credit score remains good, you are creating for yourself a great financial future.
What is good credit?
Good credit is established through a number of activities that you carry out. In financial terms though, credit scores are affected positively when a person has been successful at making timely and complete payments for all of their debts. These debts include credit card debts , rent payments, utilities bill settlements, loan repayments and other types of financial obligation that require you to make an ongoing payment. Good "payers" demonstrate that they are capable of repaying debt and doing so on time, every time.
A Good Credit Score Suggessts A Good Borrower
When you have good credit, creditors are more willing and prepared to extend you credit, or increased lines of credit. This means that if you need a loan for a new home, a car or even for other personal reasons, you will likely receive a positive response from the lender. It also means that when you apply for a credit card or other form of financial arrangement, you will be more likely to receive a positive response from that application as well.
What is Bad Credit?
A good credit score can be negatively affected by many things also. In financial terms, bad credit can occur when you do not make payments for financial obligations in a timely way, you dafault in your payments for some reason or you have allowed your debt to increase to such unmanageable levels that it has overcome your life. With bad credit, the opportunities that those with good credit have access to are often not available: creditors and lenders will likely deny your request for any type of loan or credit, you may have troubles renting a house or apartment and you might even be turned down for a job application.
Should I Improve My Credit?
The short answer is... absolutely, yes! If you have good credit, work at it to improve your credit score to a status of excellent. If you have bad credit, it is in your best interests, particularly for your financial future, to improve your credit so that your credit score is good at the very least. When you work to improve your credit, you will find that the doors to credit opportunities will open a great deal allowing you access to all the benefits that credit can offer you if used wisely. Creditors and lenders are will be more accepting and may be ready to offer you exactly what you are looking for. You can also walk with your head held high, knowing that you now have a good credit score and are taking charge of your financial future.
Javier Melendez writes for several financial websites such as the No-CreditCheck-Loan.co.uk site. His recent work concerns loan without credit check research.