Responsible Payment of Accounts Today Means Creating Impressive Credit History
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » Responsible Payment of Accounts Today Means Creating Impressive Credit History

Responsible Payment of Accounts Today Means Creating Impressive Credit History


Updated: December 26, 2012

By
Add to Favorites:

Borrowing money is a trend that could enhance the lives of individuals financially. Being approved of a loan, a mortgage or a credit card application is already a privilege in this world and times of economic catastrophe. The best option for a consumer to grab this chance is to bring out his credit worthiness. The capacity to pay for a loan is measured by lending companies including banks and other retails stores through credit history. It is a fact that all financial transactions done by you that are reflected in the records of financial companies will dictate how your condition will be in the future.

Upon your application for credit, the company will secure a copy of your credit report which was prepared by the three reporting agencies. The content of the credit report is based on the information gathered by the bureaus from merchants, landlords and other creditors whom you have made transactions with in the past. Whatever purchases or acts of borrowing you have done and have not settled will be posted until the time you pay for them or you negotiate with your merchant to delete them.

Credit history is the sole basis of your credit scores. The delinquency or promptness in your payment a few years back will be known to your prospective lender. Your scores are made up of several components which the credit reporting agencies use to compute. If your reports don¡¯t show any signs of your willingness to pay your debts regularly and promptly, then the lenders will have an impression that you are not in any way worthy for another big opportunity. Credit scores are divided into three main categories which are payment history, debt to credit limit ratio, length of credit history, types of accounts which are opened under your name and the inquiries you made for new accounts. All these five categories are essential in achieving a score worthy of another credit chance.

You are the maker of your own financial destiny. If you buy something today which you don¡¯t need and which exceeds your credit limit, you break your credit history. If that something you buy cannot be afforded by what you actually earn, then again you create a bad history. Everything now lies in your hand. Financial management is your way out of misery. Use your credit opportunities wisely, be responsible for what you borrowed and open the doors to great financial chances tomorrow.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: September 28, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When Amazon.com was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading

How Much Do Shell Cards Really Save on Gas?

By Allison Martin, Posted: April 20, 2016

There is an endless amount of gas cards on the market, and practically every major gas station, including Shell, has options to choose from. In fact, Shell offers two options for gas cards for consumers. Continue reading