10 Things You Need To Know
1) It can take 8 years or more to pay back a credit card balance of $1,000
when you make ONLY the "minimum monthly payment."
2) A poor credit history can hurt your chances of getting an apartment,
a car loan, and in some cases can even affect your chances of getting a job promotion or a new job.
3) Good credit is determined primarily by information found in your credit
report. What it says about you is one of the most important factors in achieving financial independence.
4) Although collection agencies may be persistent in their efforts, they
are required to follow federal, and sometimes state laws, that prevent harassment and deceptive practices.
5) Collection accounts are considered very negative and will hurt your credit
for years to come, your best strategy is to avoid them altogether.
6) In some cases, you may have been denied credit because you have an abundance
of credit available to you. This means that when a lender considers the amount of available credit you have from credit cards,
bank loans and other sources and compares it with your income, the numbers indicate that you likely cannot afford to take
on more debt.
7) Your credit report is as important as a resume.
It documents how well you have paid your bills and used financial tools such as credit cards and checks. Like a report
card or a resume, a credit report is used to document your financial performance. Even debts of small amounts, if not
paid on time, can hurt your credit standing.
8) Because your credit report is an important part of many credit scoring
systems, it is very important to make sure it makes a good impression before you submit a credit application.
9) The best way to catch a thief who is using your name is by getting a
copy of your credit report, which will show if there are accounts listed that you did not open.
10) A debt collector may contact your neighbors, family, friends, and
co-workers, but only to find out where you live and work. They are usually prohibited from contacting such permissible
third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe
money.
