Are_You_Credit_Worthy_ by aamirshah02

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									Title:
Are You Credit Worthy?

Word Count:
521

Summary:
Having good credit is essential in today’s world. Acceptable credit will
generally get you what you want, but bad credit can be the kiss of death. If you
want a house, you need a mortgage. If you want a car, you’re likely going to
take out a loan. Anytime you apply for credit, the lender is going to pull your
credit report to determine whether or not you are a good credit risk. Not
everyone is a good credit risk—but there is something you can do to make sure
you become one.
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Article Body:
Having good credit is essential in today’s world. Acceptable credit will
generally get you what you want, but bad credit can be the kiss of death. If you
want a house, you need a mortgage. If you want a car, you’re likely going to
take out a loan. Anytime you apply for credit, the lender is going to pull your
credit report to determine whether or not you are a good credit risk. Not
everyone is a good credit risk—but there is something you can do to make sure
you become one.

Millions of Americans have poor credit, and many are in debt because of high
interest credit cards. Credit card companies often target low-income families by
providing them with high interest credit cards, but they aren’t the only ones to
fall in debt’s trap. In fact, one million Americans file for bankruptcy each
year. Bankruptcy isn’t the answer for everyone, but there are several things you
can do to get your credit healthy again.

First, make a budget and stick to it. Save money by clipping coupons, buying
items on sale and not eating out as much. Don’t buy something on a whim. Go home
and think about it first. Chances are you’ll never go back. Remember, buy only
what you need.

The money you save can be used to pay back debts. If you have problems paying
your bills, you should call the creditor immediately. If you ignore your
mortgage bills, you can face foreclosure and the loss of your home. Most lenders
will work with you to help you get caught up on your bills and allow you to keep
your home. However, if you default on your car payment loan—even if it’s late on
a given month—the lender has the option to just repossess the car. Staying on
top of your debts will help you on the path to good credit.

You also want to get a copy of your credit report from one of the three major
credit bureaus: TransUnion, Experian and Equifax. Your credit report includes
your personal information, your accounts, your credit history and whether or not
you’ve defaulted on an account. Review the credit report carefully, looking for
any errors pertaining to your personal information. Also, look at each of the
financial statements to determine if there’s a credit card you’ve already
closed, a debt that shouldn’t be there or any other mistake. Contact the credit
bureau immediately if you do spot any errors.

A lender determines if you’re a good credit risk by looking at your credit
report and analyzing your credit score. Most people have a credit score anywhere
from 300 to 750. Anything 650 and higher is considered good credit. Anything
below means you’re on shaky ground.

Remember the key to creating and maintaining good credit is to pay your bills on
time, and always call the creditor if you find yourself unable to pay the total
bill to see if they can help you work out a plan to help you get back on track.

								
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