Is my credit bad? If it is...how can I tell? Is there a sign, or a number, or a specific way to tell that my credit is WORSE than average? And if so....what can I do to improve it? Any of this sound familiar?
The BAD news?
If it does....the penalty of having bad credit is NOT easy to endure. In today's cash crunched culture, having good credit is MANDATORY for getting ahead...and getting a little bit of breathing room if and when your cash flow dries up, goes down or simply goes away. (like mine has MORE than once..:-)
1: The Secret is in the Score
While credit values fluctuate in terms of what's considered "good" or "bad", there are still universals. A credit score UNDER 620 is considered very challenging and if you hit the "500's", you are officially in the bad category for sure. (either on ONE or an average of all 3 reports)
2: You are declined employment
The truth? Forget about getting a new card, car or mortgage. If your credit score is bad enough that your job or ability to seek new employment is compromised....you've definitely got a problem. Depending on whether or not your job requires bonding, a credit report may be ordered in conjunction with employment, and if your score is NOT up to snuff, you may find yourself unemployed instead!
3: Your INSURANCE rates go UP! (or you can't be insured at all)
Believe me, I've had this happen...and it's NO fun, and quite embarrassing to boot. You can literally check this by applying for something as simple as car insurance quotes online....and you'll find the rate you get is adjusted UP for bad credit...even if you've never had an accident, or a violation of any kind at all. (usually they'll tell you your rate is MORE expensive due to issues on your credit report)
The BAD news?
If it does....the penalty of having bad credit is NOT easy to endure. In today's cash crunched culture, having good credit is MANDATORY for getting ahead...and getting a little bit of breathing room if and when your cash flow dries up, goes down or simply goes away. (like mine has MORE than once..:-)
1: The Secret is in the Score
While credit values fluctuate in terms of what's considered "good" or "bad", there are still universals. A credit score UNDER 620 is considered very challenging and if you hit the "500's", you are officially in the bad category for sure. (either on ONE or an average of all 3 reports)
2: You are declined employment
The truth? Forget about getting a new card, car or mortgage. If your credit score is bad enough that your job or ability to seek new employment is compromised....you've definitely got a problem. Depending on whether or not your job requires bonding, a credit report may be ordered in conjunction with employment, and if your score is NOT up to snuff, you may find yourself unemployed instead!
3: Your INSURANCE rates go UP! (or you can't be insured at all)
Believe me, I've had this happen...and it's NO fun, and quite embarrassing to boot. You can literally check this by applying for something as simple as car insurance quotes online....and you'll find the rate you get is adjusted UP for bad credit...even if you've never had an accident, or a violation of any kind at all. (usually they'll tell you your rate is MORE expensive due to issues on your credit report)
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