Posted on: May. 08, 2017 in Credit, Credit Score

Many people feel overwhelmed by all the information swirling around them, particularly when it comes to finances and credit. Between friends and family who are full of advice, articles and blogs about money, and an inundation of credit card offers in the mail, it can get pretty confusing. Even when you’re confident you have a grip on things, it’s easy to start to question yourself.


Here are some facts about credit that you may not know.

Fact: You need credit. While there are people out there who go their whole lives never needing to borrow money, most of us will want to finance something at some point. In order to get credit, you’ll need a good credit history. If you only use cash, you won’t have anything to prove you’ll be a good borrower.

Fact: Credit mistakes will follow you around. If you’ve fallen behind on bills or been late with payments, those things show up on your credit report. When this happens, it’s important to rectify the situation as quickly as possible. However, it’s also important to understand that these occurrences can remain on your credit report for 7-10 years. It’s best not to make them at all.

Fact: Ignorance is not bliss. If you missed a bill from a creditor, claiming you didn’t receive it won’t stop you from being sent to collections. If you’ve been to the doctor, for example, and you don’t receive a bill, it’s best to call to find out why, rather than finding out they sent you to collections three months ago! It’s far easier to resolve an issue before it becomes a blemish on your credit history than it is to clean it up later.

Fact: You can raise your credit score. If your credit score is low, you’re not alone. Many millions of Americans have damaged credit. You can rebuild and raise your score. Taking steps to borrow responsibly, reduce debt, and pay off any outstanding bills will boost your score.

Fact: Credit is not the enemy. Having a safety net in an emergency or the power to buy things and pay for them over time can be essential. When you have good credit, your options are increased. You should build this credit history and work to keep your score as high as possible so it can work for you.

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