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The credit-based economy of today`s market has an existence that is totally embraced by the American people. The growth of the use of credit card for instance leaves overwhelming figures in different surveys. The huge dependency of consumers with credit in purchasing and decision makings has deeply penetrated the world`s economy indeed. Because of this, having a good credit record or a bad credit reputation can greatly influence one`s life. Since credit pervasiveness has gone far, its effects and impacts have widened and deepened as well. Nowadays, a good credit goes beyond influencing you getting a loan or a credit card account. More aspects of your life can be affected as well.

Let`s start with your home. Mortgage loans can be granted or denied depending on how well or bad your credit score reveals. Business loans are also made blurred if you have a messed up credit records. A similar pattern can happen with a car loan. Indeed even purchasing a car using a loan can be influenced by your credit score. If not denied, sky-high amount and interest rate will be given for the loan.

Your employment can also be affected by having a low credit score. Now being part of the hiring process of most companies, the financial credibility and responsibility are being checked by employers. In addition to this, establishing utility services like cable, water, telephone, cell phone and electricity are now making use of credit records. Service providers now apply this checking of their consumers` credit records before providing the services. It`s somewhat odd but it`s happening.

Now that we have an idea on how far and wide can a bad credit record can go, there should not be any reason for us to build a poor credit record. One way on how to be careful, about the threats a bad credit history can give is by looking at the things we should not do on the first place.

A bad credit history can be made through several consecutive late payments. This delinquency gives your credit record the impression of how irresponsible can you get when it comes to paying what you owe. So if you wanted to have the worst record, make a practice out of this.

Next thing, applying for a lot credit lines in a short time can also contribute to a messed up credit record. Applying for several loans, credit card or store cards will make each of the lenders to request from your credit history from the credit bureaus. Multiple applications in a short span of time might reflect your desperation or impulsion and this will give you negative points. Moreover all your application adds up to your credit history. Any future lenders might take this as a sign of your application being turned down several times thus you have several inquiries from different lending companies in a particular short period of time.

A poor credit history is also made possible by changing your credit cards up to their limits. Your credit score and your credit card balances are inversely proportional. One goes up, the other will go down. So if you want a bad credit record keep your balances high.

Finally an excellent way of hurting your credit history is through bankruptcy. It can devastatingly injure your credit worthiness and erode your chances of obtaining mortgages, insurances and loans at favorable rates for up to 10 years.

Building a bad credit history can be easier than a good one. However, shouldering its effects and impacts can be worst than nightmares.