Bad credit history can distress your life greatly especially when you prefer dealing with credit rather than cash. If you plan to get a car loan, a cash loan, a new credit card, student loans and home loans, you have to make sure that your credit is good. That is the first thing lenders will be looking into. A good credit history will bring you a high credit score and this credit score will determine your creditworthiness as a person. Having a very low credit score would mean fewer chances of ever getting that money that you need so make sure that you have a high one.
How would I know if I have bad credit history?
First, you need to obtain a credit report from the three major credit bureaus namely Transunion, Equifax, and Experian. Make sure that you are able to get from each one of them for you to be able to compare. Sometimes, they may not have the same contents on the reports because of their updating processes so you have to get all three. On the report, they will tell you whether you have a bad or good credit history.
How can a credit report show if I have bad credit history?
Your lenders report to the credit bureaus regarding your performance as their debtor. Whenever you get a loan or a credit card, lenders monitor how you pay your bills whether you pay on time or not. If you neglect to pay your dues in a period of time, your lenders will report this to the credit bureaus and this will cause you to have a bad credit history and cause your credit score to be lowered.
So, how can I get a high credit score and make my credit history good?
To achieve a high credit score, you need to make sure that you are in good terms with your lenders. They are your credit card company, your local banks where you have loans with, your Mortgage Company, and other institutions where you might have borrowed money. Basically, what you need to do is to make sure that you pay them on time. If you are not able to pay on your due date, lenders usually give you a grace period. But if you go beyond the grace period, then your credit history is in danger. Pay them as soon as possible, even earlier than your supposed pay date.