Understanding the basics of bad 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 » Understanding the basics of bad credit history

Understanding the basics of bad credit history


Updated: December 26, 2012

Add to Favorites:
Credit history reflects the financial credibility of an individual. A credit score is what will quantify ones credit history. This score is maintained by one of the three credit bureaus. There are a number of factors that decide the credit score, and thus the credit history of a person. We shall go through a few of the factors that can decide the credit history of a person. The most important thing is the amount of debt that you have. The greater the debt, the lesser your credit score is going to be. Having debt is okay, but it is important to make payments regularly according to the terms and conditions. Failing to make the required minimum payments will negatively affect your credit score. The number of credit accounts you have also determines your credit score. Having many credit accounts is a good thing, but the fact remains that each time you apply for a credit account, your credit score will suffer because the bank sends a request for your credit score to the credit bureaus. If your request is rejected, your credit score will be seriously affected, as this shows that there is some reason for the credit card company not to believe you. Not paying your bills regularly is another factor that can affect your credit history. This can include mobile phone bills, utility bills like water, electricity etc. Post paid mobile phones are linked to your social security number and to your credit reports. Your credit score will be affected adversely if you fail to make a payment. If you do not pay your rent on time, your credit score can suffer. This is only if you shared your social security number with the landlord when you made the agreement. If he files a complaint with rent control and they lodge a report, it will show up on your credit report. Failure to pay back loans like auto loans, education loans or house loans is another important aspect. Even if the loan is secured and the secured item is seized by the bank, you will still suffer, as the bank will lodge a report with the credit bureaus and you will not be able to get loans as easily as you did before this incident occurred. Never leave a loan or credit to collection. If this happens, the bank will have to spend a lot of money to track you down and send loan retrieval agents to seize the property in question. As a result of all this trouble, they will get back at you by filing that report which will say that you are not credit worthy. When you are young, it might seem okay to let go of an automobile if you are unable to repay the loan, but its not just about the money, because credit reports go back seven years into your history.

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

Related Research:

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

Posted: June 21, 2017

Whether you are married or not, we all agree that marriage is incredibly important for a person. It signifies the beginning of two people as a team, as a family, of a long commitment. It is a newly born union and the sign of your choice, ... Continue reading
How To Choose The Best Credit Card For Everyday Spending

How To Choose The Best Credit Card For Everyday Spending

Posted: June 21, 2017

When you reach for your wallet to pay for groceries, gas, dinner out, or any other everyday purchase, are you searching for cash, a debit card, or a credit card? Many people hesitate to charge this type of everyday spending to a credit ... Continue reading
How to Save Money. Best Credit Card Deals and Tips.

How to Save Money. Best Credit Card Deals and Tips.

Posted: June 20, 2017

We all've been through or may find ourselves in such an emergency when money is needed immediately. Lucky you are if you have savings for unexpected expenses. If not, it's never too late to start saving money. There are different ways to ... Continue reading