Bad Credit Rating

Do you know how fast you can get a bad credit rating? Knowing the factors that drive a credit score down, down, down, you can work to build and repair your credit. 

Unemployment can turn your credit into a nightmare. When a steady paycheck is lost, we struggle to pay our bills and our credit rating is usually one of the first things to suffer. 

Do you have a credit history? Having no credit history is as bad as having a bad credit rating. If you don’t have any established credit at all, then it will be difficult for you to finance major purchases such as auto loans and home loans. Having no credit can hamper your ability to obtain credit. 

 Having a history of late or delinquent payments can wreak havoc on to your credit history. It is a red flag to reporting agencies and several consecutive late payments and delinquencies indicate trouble to the reporting agencies, which means your credit score will drop significantly. 

How much are you running your credit? Are you applying for car loans, home loans or credit cards frequently? Every time you apply for a auto loan, home loan, credit card, and those store cards they offer you price discounts for applying for, well not only is that costing you 2 to 5 points on your credit score, but multiple inquires in a short period of time can make it look like you are desperately trying to obtain more credit quickly, which is a red flag to credit bureaus and creditors. 

So you have established credit and you have charged those cards up to their limits. Your credit score is based on several factors one being your debt to total available credit. As your credit balances go up, your credit score goes down. Keep this in mind, credit scores are based on many factors that you can control. 

Bankruptcy will significantly affect your credit score in a major way. Your score will drop in a major way, and creditors will see it on your credit report for 10 long years. It will affect your obtaining auto loans, home loans, credit cards and the rates you pay for many years. 

You don not have to live with bad credit. Make the choice to improve your credit today. Good Credit is a reality and you can have it too. Step 1 Credit helps thousands of consumers realize their dreams of good credit. Call for a free consultation today.