These are just a few things that can give a negative score to your credit standing:
- Unpaid mortgage
- Tax liens
- Foreclosure
- Bankruptcy
- Past due accounts
It is a common fact that in this time of economic depression, millions of people are losing their good credit standing. It has become a global trend and even if lots of people are being affected by the global economic crisis, no one wants to be in a situation wherein his/her cannot handle debt and finances. Bad credit sends a negative repercussion to future investors and creditors and even amidst an inevitable financial crisis, everyone does not want a negative remarks on their credit report.
A consumer credit report can be obtained by any of these three major credit report agencies: Equifax, Transunion and Experian. The credit report is free of charge to consumer for only once every year. Subsequent request for credit report is charged for a certain fee.
The first and foremost thing that most people should understand: in order to avoid negative rating on your credit score, you need to pay your bills on time. As much as possible, make it a habit to pay ahead of the due date in order not to incur finance charges or late payments. As a rule of a thumb, it is very difficult to trust people and companies posing to help you with your credit payments. It is still the best thing if you pay on time and on over the counter or arrange for an auto-debit of your loan payments.
It is also of great help if you curb your expenses and go down with only with the basics. A lot of people are drowned in debt due to their excessive shopping and whimsical things they wish to have.
On the other hand, if damage is already present in your credit score, you certainly need to repair it either through your own effort or through the help of credit repair agencies governed by the federal rules and regulations regarding credit repair. One should exercise extreme caution in these types of agencies posing to take care of your debts by debt collections payments from you.