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Many people are faced with a crisis when it comes to their credit scores. When they took the credit card, they did not consider that things would get so bad. But when the credit card payments were done late or missed altogether it resulted in very poor credit scores and eventually affected every area of their life.
Having a bad credit history can be a real pain. It is something a person is stuck with making a mistake having to bear with the mistake for seven years can seem like a horrible problem. When your credit score goes down you cannot fix it or repair it until a long period of time. When opting for a credit card, you must be careful that you can afford it. It gives you greater spending power, but spend wisely or else you may find that you have too many bills and no money.
People with bad credit histories experience trouble with every area of their life. They cannot pay their bills and are considered as unreliable and their credit worthiness goes down. This means the chances that you get a mortgage deal that is good or that your vehicle loan gets sanctioned gets even lesser. It also creates problems in getting insurance or even to get a good job.
Companies will of course check your credit history and see what you can afford and how well you sort out your bills. If you are seen to be someone who has a lot of bills and spends thoughtlessly you will not be considered for that better job as you are not capable of managing things well. However when any denial occurs for a product or service, it is important as per fair credit regulations that the individual is told on what counts they are denied access to a facility or a job.
The older your credit history the better it is. But it is not necessarily always good. If you have not been paying on time, your FICO scores will have taken a dive to the bottom and you will find it difficult to have most transactions done and to be eligible for many things. When you use your cards, don't use every card you have.
Many people think having multiple cards is the best way to fix a situation and have things working perfectly. But this is not so. Having multiple cards often makes it more difficult to settle your accounts and sort out how much you owe to various creditors. It also becomes difficult to figure out the different interest rates on the cards and if you are forgetful it can be more of a problem remembering payment due dates.
Make your monthly payment regularly. Make sure that if you have multiple cards, you have a checking account set up by which you can pay off your monthly dues through an automated system. If you can sort out your various bills and receipts and be regular in your payments you will not experience any trouble in maintaining a good credit history.
