Friday, January 04, 2008

Personal Credit Issues To Be Familiar With

By Robert Bain

Your personal credit is as unique to you as your fingerprints and just as important. You definitely need to keep your eye on your credit because if you don't it could lead to huge problems later on. The reality of it is that establishing your own credit can be hard but it is like a right of passage.

It can be exciting to get that first credit card to carry in your wallet. However, you don't need to be taking it out and using it so much the numbers are rubbing off of it. Carefully plan to use the credit card for a few things though. This way you can pay it off at the end of the month and prove to the creditor that you are serious about your commitment with them.

As long as you are responsible with your personal credit you should be able to access it when you need it. Buying a house or a car should be dependent on your ability to pay for it. If you have a spotty credit history though you may be struggling to find a lender that is willing to work with you.

Too many consumers don't realize how difficult it is to get credit. I can tell you though that it is even harder to get it when you don't have a good track record of paying back what has already been extended to you. This places you into a worse situation in the eyes of the lender than if you have never had credit before.

An issue you really need to consider when it comes to personal credit though is being able to prepare for what is taking place in the future. Since you don't know what that will be you simply have to prepare for it. Don't have all of your disposable income tied up in paying for things because it isn't going to benefit you in the long run.

Even if you are good about paying your bills on time, your personal credit can still suffer. Identity theft is a huge issue in our society. It has gotten worse with the use of the internet as criminals have less risk of getting caught when they steal your information this way. They can use your information to open new accounts and then creditors will be looking for you.

Identity theft can result in a person struggling to prove they didn't make these charges. The process of clearing your name can take years. There are legal fees involved and tons of paperwork. People have lost their homes and their businesses due to identity theft as they just couldn't get past it. It can take several years for the accounts to be taken care of and in the mean time you can't access credit you really need.

The more familiar you are with personal credit issues, the better off things will be for you. Pay attention to what the credit you do access is costing you. Be very particular about your purchases so you don't end up not being able to pay what you owe. No one sets out to have bad personal credit but it happens to people too often in our society.

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