Yes, right we work to earn so we can buy things that we wanted and we needed. While it is true is it not also right that we work and be able to save a part of our paycheck for emergency uses? Most of us are guilty of this: we spend and use up all our credits but when paying time comes, all we have are piles of bills with too little cash. It is a sad fact but true.
Maintaining a good credit history might not be seen as a very important thing for some people until they get rejected of a loan, mortgage or credit card application. Credit card history is the number one factor that tells whether you'll get a loan or not.
A good credit history is one where it shows a record of a good paying pattern and no record of bankruptcy. Declaration of bankruptcy and red marks on your record ( like non-payment of debts) stays on the record for long years and needs to be fixed with a great deal of time and effort and yes money as well.
It might take long years but there are steps that you can do to fix it. You could get started by repaying all your debts starting from the ones with the highest interest. It might be the most difficult but most effective. Now, if you think that this step is almost impossible for you to do then you may want to contact a non-profit credit organization to give you some advice on how you could consolidate your debts.
Debt consolidation is a process wherein debts you have incurred from several creditors will be merged as one and that the monthly payment will be made lighter. It still involves a monthly payment but at least with a lower interest and a lower monthly amortization.
Credit card thieves are among the most common crimes that burdens a lot of consumers; you'll never know you've maxed out your credit without even using it. Anyone can fall as a victim of this crime so have a regular check of your credit report. When discrepancies are seen, report it immediately. Taking those errors for granted with the belief that it is a system errors that the company will have to deal on later will only make worse things worst.
Isn't it a comforting feeling knowing that when emergency comes, we can always take out a loan to help us get on our feet again but with a poor credit reputation, not a lot of lenders would be willing to invest on you. Be wise and manage your finances wisely.