Bad Credit Records and the Credit Check--There Is Still Hope

When you try to apply for a loan or a credit card

, the lender does a credit check. A credit check is done by a potential lender to check if the debtor creditworthy.

A lender goes through your files and investigates your income, employment history, and payment history. They go through credit reports to scrutinize your monthly debt, how you repay your loans, pay your bills, and how much available credit you have to determine whether you are worthy of a new loan or card.

It is recommended that you regularly perform your own credit check.

You are entitled to get a copy of your credit report from the credit bureaus. Keep yourself posted and see if there are any errors.

It is best if you keep copies of receipts of past purchases in case there are any future disputes regarding late payments. This way you can protect yourself from any false information that can be in the files that may affect the credit check lenders carry out.

However, if you find yourself with a bad credit record and you are worried about rejection, do not be tempted follow any illegal advice from organizations that promise to provide credit repair.

Falsifying personal information can lead to more trouble in the future. Maintain credit cards with good payment histories.

Keep making regular payments as this will reflect well on your records and may even prevail over bad records, which can help during a credit check.

Immediately pay off any debt. Pay first the ones with the highest interest rates and pay extra for the ones with the lowest outstanding balance.

Also, try to arrange a schedule of payments with your creditor wherein you pay only what you can at a time.

Lose bad spending habits and learn from your mistakes. Renewed habits and good intent can soften the hearts of even the most serious bankers

Bad Credit Records and the Credit Check--There Is Still Hope

By: Rick Bruya

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