If you presently have bad credit, it’s time to take action and work on rebuilding your credit. Why is good credit important? What are the advantages of having good credit?

1. Reduced interest rates. Whether you are trying to get a personal loan, mortgage, car loan, credit card, or even insurance, your interest rate will be based upon your credit score. Of course, loan companies reserve their best rates for clients with impressive credit. A low score may imply that you have not been prompt with your payments or that you may have delinquent accounts. Thus, the higher your credit rating is, the lower your interest rate would be.

2. No to security deposits. Individuals with a poor credit are usually required to submit a cash deposit to get a credit card. This does not have to be true for those with good credit. Credit card issuers would be glad to approve your application without security cash deposit.

3. Easy approval or No rejections. Poor credit can hinder you from getting approved. Even worse, your application may get declined and that can do more damage to your credit.

4. Enjoy a higher credit limit. A low credit score restricts your options particularly with your credit limit. When properly handled, a higher limit keeps your credit to debt ratio low so you can get a higher credit score.

5. Keep away from stress. Rebuilding your credit history means eliminating your debts and saving yourself from the stress of dealing with abusive debt collectors.

6. Get hired for a job. Creditors or loan companies are not the only ones who are interested in your credit history. Employers also check credit reports before hiring personnel or promoting employees. An excellent credit history will surely give you the edge over your competitors.

7. Rent where you want. Landlords and apartment owners also check credit history. If you have poor credit, you may not be able to rent the place you want because the landlord doubts your repayment capability.

8. Avoid predatory subprime lenders. Some subprime lenders may try to take advantage of borrowers with bad credit by imposing unreasonable terms and hidden charges. If you have good credit, you can avoid dealing with such lenders.

9. No need for a co-signer. It may be difficult to find a co-signer who will guarantee a loan for you. If you have good credit history, you will not need a co-signer to back you up.

10. Get approved for a business loan. For those who dream of starting their own businesses, it can be very difficult to get a business loan with bad credit history. But why wait until you need to apply for a business loan before rebuilding your credit? By taking action now, you can enjoy all the above benefits and more.

About the Author

Elizabeth Roberts is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing bad credit loans and bad credit cards to people with bad credit.

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Resources for YOU:

• Free Credit Repair
• Credit Cards for Bad Credit

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  ]]> http://www.badcreditresources.com/articles/why-you-should-repair-bad-credit/feed/ 0 http://www.badcreditresources.com/articles/charge-offs-and-credit-repair-what-you-can-do/?utm_source=rss&utm_medium=rss&utm_campaign=charge-offs-and-credit-repair-what-you-can-do http://www.badcreditresources.com/articles/charge-offs-and-credit-repair-what-you-can-do/#comments Wed, 03 Feb 2010 21:03:41 +0000 bbcred

  "Charge off" is an unfavorable remark which can hurt your credit history and rating.  If a certain lender fails with its attempts to collect payment from a borrower, the debt can be considered as a “charge-off”. ]]>

  “Charge off” is an unfavorable remark which can hurt your credit history and rating. If a certain lender fails with its attempts to collect payment from a borrower, the debt can be considered as a “charge-off”.
  
  Simply put , this indicates that the lending company has given up with its debt collection efforts and that the debt has been counted as lost income.

  Nevertheless, it does not imply that the debt has been forgiven. Lenders may still assign a debt collection agency or an attorney to take charge over the collection. In this case, a borrower may have a more difficult time recovering from debt or negotiating with a debt collection agency.

  As you can imagine, having a “charge off” remark in your credit history can pull down your credit standing. It might also send a negative impression to other creditors. Trying to get approved for new credit can be harder when you have “charge offs” in your report. Hence, acquiring a record of charge-offs must be avoided. But how?

  Pay Close Consideration To Your Payments
  Making payments promptly is the key to maintaining an outstanding credit rating. Nevertheless, there could be times when you may fall short on your budget and paying by the due date may not be possible. In the event that you cannot submit your payment on time, a good thing to do would be to get in touch with your creditor and explain your situation.

  Show your lender that you are willing to pay your debts by the due date but that your present circumstances do not allow you to. Ask your lender for an extension of your due date. Most lenders would oblige especially if they can see that you are willing to stay true to your obligations.

  By letting your lender know about your situation, you can stop them from taking any harsh action against you. On the contrary, trying to hide from your lenders or ignoring their calls may only lead to a more serious trouble. Do not wait until your lender makes the first move to contact you. Take the initiative to speak with your lender before as soon as possible.

  How to Deal with Charge Offs
  Let’s say that you currently have a record of charge-off in your report? What should you do? Can you delete it from your report? Speak with your lender and ask if they can remove the record of “charge-off” from your report. Explain your financial situation and negotiate for a new repayment plan.

  After your debts have been paid off, you should definitely check your credit file to find out if the “charge-offs” have been taken out. If not, you may send a dispute letter to the credit bureaus and ask them to remove the “charge-off” within your report. Upon receiving your dispute letter, the credit bureaus have 30 days to get in touch with your creditor and complete the investigation. Afterwards, you should be sent an updated copy of your credit report.

  About the Author

  Liz Roberts is a freelance writer and loan consultant. The website http://www.badcreditresources.com offers resources that specialize in providing bad credit loans and bad credit cards to people with bad credit.

  Related Articles:
  

  Bankruptcy: How Does the Trustee Work?

  Important Questions About Your Credit Report

  Resources for YOU:

  • Bad Credit Personal Loan
  • Instant Approval Credit Cards
  • Credit Cards For Bad Credit
  • Debt Consolidation

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