The three major credit bureaus have been gathering information about you ever since you opened your first credit account. If you made all of your payments on time, your creditor reported this information to the bureaus, and you had a high credit score. If, on the other hand, you were in the habit of making some late payments, your score was probably calculated to be lower. This is credit score 101. Beyond this, there is much more to learn – but how?
The Answer Is Credit Counseling
Maybe you’re one of the millions of Americans who struggle to pay their bills on time every month. Maybe you’ve missed a payment here and there, and now you’re having difficulties obtaining the credit needed for making large purchases. What you need is credit counseling from a company like CreditGuard. Not only will the right credit counseling service teach you better credit management skills, but it will also help you learn how the credit bureaus are calculating your scores and what you need to do to increase and maintain them at a high level.
Your Credit Report
With credit counseling, you will learn more about who exactly is reading your credit report. Here is a list of the types of people who might need to perform a credit check:
- Future employers
- Potential lenders
- Insurance agents
- Apartment managers
- Utility companies
Why Maintain High Credit Scores?
Let’s look at an example. If you are seeking a new auto insurance policy, your insurance agent will do a credit check. The agent will determine how much to charge you every month for your premiums based on what is written in those credit reports. Statistically, people who pay their bills on time and have high credit scores are determined to be more responsible, and this translates into lower premiums for their auto insurance.
The fact is that a good credit report makes financial matters much easier for you. You will be approved for loans faster, and your lenders will charge you lower interest rates. You will pay less for everything because your creditors can be assured that you will pay your bills on time. With credit counseling, you can learn the financial skills that will enable you to become this person.
Obtaining the credit that you need right now may be difficult, but this situation doesn’t have to last. Once you begin learning about credit management, you will be well on your way to having the tools you need to improve your circumstances.