Perfect credit scores are probably one of the most important parts of being a well-organized adult, especially if you’re getting serious about organizing your financial position. What you should understand about achieving good credit scores is that they rely heavily on consistent credit building via strategic borrowing and payments.
Credit scores are checked by banks or private lenders who you’ve applied to for a loan, as well as credit card providers. This means that your credit record is almost like a public record — but for your finances.
There are many reasons why people advise never to forget about your credit and here are just a few reasons why.
Credit Scores Affect Your Finances
Credit scores are one way for lenders, credit card providers, and other relevant institutions to gauge how reliable you are in terms of your payments. This means that negative items such as missed payments, bankruptcy or too much outstanding credit can be discouraging.
However, having little to no credit history is also harmful. If you don’t have a history of borrowing and making payments, lenders won’t really know how reliable you are. For a large loan, you may not make a good borrower if you haven’t proven your ability to make credit card payments, for example.
Negative Items Can Build Up
It can be stressful to think about how many negative items are building up if you’ve missed a couple credit card bills or loan payments, but you need to internalize the idea that unless you know where you’re at you can’t fix it.
You could be making decisions to handle your finances, such as applying for more credit cards or loans and getting rejected, without knowing that each inquiry an organization makes means deducted points.
Repairing Credit Report Errors
If you ignore your credit score and report, you will never be able to identify credit report inaccuracies as well. There are often instances where your payments are never filed into your credit record or your credit record isn’t updated with new information.
These inaccuracies can be challenged and changed by a lawyer who has experience in disputing credit report errors.
Detecting Fraud
In some cases, you may even find that there are credit items in your report that were not yours to begin with. If you’re a victim of identity theft and/or fraud, your credit report errors can be removed via action that your credit lawyer takes for you.
So, make sure you keep tabs on your credit report, and if you find any false items, make sure to contact me at Cook Law, LLC. As a lawyer for credit repair in St. Louis, I can assist you in whatever legal action you need to take for your credit report errors.
I also practice in bankruptcy errors, debt harassment, and background check inaccuracies in St. Louis, MO and Chicago, IL.
