The basics of Bad Credit Histories you should be aware of
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 » The basics of Bad Credit Histories you should be aware of

The basics of Bad Credit Histories you should be aware of


Updated: December 26, 2012

By
Add to Favorites:
Having no credit history is better than having a bad one. The unfortunate part about Credit history is that they can rarely be rewritten. What has occurred is bound to be recorded and will remain unchanged. A credit history is the most important baking statement in recent times. It is the only valued record of a person past financial transactions. The idea itself, originating to provide a quicker - more comprehensive background check on a customer. Credit histories are reviewed by banks and other financial organizations to determine the character of the customer. A credit history comprising of details of every single financial transactions bring to light various details about the customer - whether he or she is likely to make payments on time, whether income can manage loan payments, how much debt has been incurred over the past, how long the relation with one single financial organization has lasted, etc. The credit histories also indicate if a person is prone to keep changing banks. If he or she does, the reasons may be obvious. Financial analysts in banks and other similar organizations are trained to read between the details of a credit history. For one, they can accurate determine more often than not, how credit worthy a customer is. This aspect of credit worthiness is most crucial during loan sanctions. In fact, the banks primary interest in an individual's credit History is to check credit worthiness. Credit worthiness is an interesting term. The term suggests that a customer can be credit worthy or not. Credit worthiness is determined by a person's credit History. For a person to be considered credit worthy, ones credit history must show timely payments and a general regularity of character. When a bank receives a loan application - education, home, vehicle, medical etc, the bank does a background check on the applicant. One need not apply for a loan at the same bank where one has an account. Most often people apply for loans wherever they can find a good loan scheme, this means that for the bank, the customer is a new one. Therefore reviewing a credit history will determine whether or not it is safe to sanction a loan to the customer. There are countless occasions when a bank has refused a loan sanction to an applicant based on a bad credit history - Particularly loans of big sums. A bad credit history is created when a person does not bother to make timely payments and is generally un-mindful of the bank's polices. A few late payments will not serve to completely destroy a credit history. Bad credit histories are created over time, which is why they are so implicative and taken so seriously. A bad credit history may prevent a person from finding a loan, even if his or her needs are urgent. With the current financial situation, and the scale of unemployment banks are even more close fisted when it come to bad credit histories. To avoid an irrevocable situation in the future, it makes sense to begin making a conscious effort to maintain a clean credit history.

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