Poor credit can affect many personal aspects such as loan approvals, home rentals, and the ability to get a job. This is why it’s very important to always check credit records and make necessary adjustments as needed. However, many consumers avoid or forget to check their credit records. If you are one of these consumers, you might not know if you have a poor credit history. As such, you should check the following signs to know if your credit needs repair.
Interest Rates Increase
Credit scores can affect car, home, and life insurance premiums. If you need to renew, extend, or refinance a loan, but have a lower credit score than before, rates may go up considerably.
Unable to Get Loans
Consumers often blame the current state of the economy for their inability to get loans. While it’s true that financial institutions now have stricter lending conditions, consumers with good credit have better chances to get loans. If you are constantly denied new loan applications, it’s time to check for ways to repair your poor credit.
History of Missed Payments
Missing multiple payments from credit accounts may substantially lower your credit scores. For example, based on the type of loan account, one missed payment can lower your credit score from good to bad. Being unable to meet your financial obligations is one of the biggest signs that your credit might need repair. Avoid missing payments by creating automated payment alerts and budgets based on your income. You should track spending to prevent a poor credit repair.
Credit Card Issues
If you constantly need to make cash advances to repay credit cards, sign up for multiple new credit cards, or get balance transfer cards frequently; you might need to repair your credit.
Don’t be Afraid of Checking Credit Reports
TransUnion, one of the three major credit reporting agencies, mentions that approximately over a quarter of adults haven’t checked their credit scores in the past 12 months. Since credit reports can contain inaccuracies or errors, it’s important for you to check your credit records at least once per year. If you avoid checking your credit history, it could be a sign that you are afraid to know your current financial state.
You don’t have to spend any money to check your credit records, since they are available for free once per year. Go to AnnualCreditReport.com, which is the only authorized source for free annual credit records.
If you are unable to rent properties, have utilities under someone else’s name, or get constant calls from collection agents, it is time to repair your poor credit. Recognize the credit repair signs to improve your finances and avoid falling into a never-ending cycle of debt. Take action since you can improve your credit scores with proper management of your finances.
This article is provided courtesy of BadCreditLoansDirect.com, a consumer finance website providing information and tools on small loans for bad credit and other personal credit services.