A good credit score is imperative to maintain in today's economic climate.
The higher your score, the easier it will be to obtain a loan from lenders and financiers.
In addition, potential employers and landlords will likely perform a credit check and may determine your worthiness as an employee or tenant based partially on a good credit score.
A good credit score will certainly make loan applications easier as well as obtaining credit.
The higher your score, the better your chances of obtaining the credit you need.
A high score will also be a positive factor in your obtaining employment.
Finally, it will assist in qualifying you as a potential tenant to landlords.
A bad credit score will adversely affect these opportunities.
Even if you are approved for a loan or extension of credit, the interest rates you pay will be higher than if you had good credit.
The obvious reason is the risk factor assessed by creditors in making the loan or extension of credit.
Landlords also will factor in bad credit as a factor against you on any tenant application since it raises a serious doubt as to whether you can or will pay your rent and any associated utility bills on time if at all.
The above are just a few examples of why maintaining a high credit score is so important to your personal and business endeavors.
If you have bad credit however, you should take the necessary steps to improve it as quickly as possible.
There are a number of methods to improve your credit rating.
The first method to improve your credit rating is preventing any further deterioration.
Make sure you pay your entire past due obligations as soon as possible.
Although this may not greatly improve the score, at the very least it will keep the current score stable.
It is also a stop in the right direction to begin improving your rating.
The second method is to try to open a new savings or checking account.
Having a new financial account and keeping it balanced will begin to show financial maturity.
There are secured credit cards you can obtain which work like regular credit cards but have a security deposit in place with the issuing lender.
This provides them with the security they need to extend you credit up to the amount on deposit.
Although the rate may be higher than an unsecured credit card, its mere existence and use by paying on time will be a positive factor in raising your rating.
After successfully completing the above methods, you will find that over time your credit rating improves.
Keep in mind, however, that your prior adverse credit will stay on your report for 5-7 years.
Thus it may take some time to rebuild your credit.
Your on time payments will result in creditors making positive reports to the credit bureaus.
These on time reports will begin to improve your credit rating.
Keep paying all of your creditors on time including your auto loans, credit card bills, personal loans and utilities to keep building the credit rating.
Ultimately you will find as you complete these steps your credit score will improve and you can take advantage of refinancing, new loans and other credit as necessary in your personal and business life.