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Tending Your Financial Garden - An Intoduction To Maintaining Good Credit
By: Jake Rustenhoven
Tending Your Financial Garden - An Introduction to Maintaining Good Credit
Did you know that wherever you go, whatever you do, you leave an invisible trail
behind you? Go to the mall, the grocery, a concert... apply for insurance or
loan of any kind, do any banking at all, have any dealings with the law, even a
ticket...and the evidence follows you for the rest of your life.
It's called a credit report. And you'd better believe it's important.
These days, you can't get anywhere without a good credit history. You need a
good credit score for the most basic things in life: renting an apartment,
applying for a loan, buying anything and everything on credit, not to mention
obtaining that all-important plastic passport to the American way: the credit
card.
If you are a student, or someone just beginning to immerse yourself into the
wonderful world of credit, you should start a lifetime regimen of good credit
maintenance right now. Check your credit frequently.
It's interesting to see records of whoever is looking into your credit history,
and it's essential to maintain a good credit rating number. But you should also
check your credit in order to make sure you have not been the unwitting victim
of the age-old scam of identity theft, now running rampant in our
computer-vulnerable age.
Identity Theft
Anyone who uses another person's identifying numbers—Social Security, phone,
birthdate, credit card and bank numbers, etc.—is committing the crime of
identity theft. Armed with this information, these incorrigible professional
thieves can take out loans, buy cars, computers and other easily resold items on
your credit card or one they obtain from your identification. They can even open
a new checking account and write checks on it! The smart way to maneuver through
the modern money maze is to protect yourself with information, by checking your
credit on a regular basis.
Bugs in your Financial Garden?
It's like they say; you can't save the rose bushes unless you know what those
white crawly things are! It's exactly the same with keeping your body healthy,
and the same with keeping your credit healthy.
What if you discover you have insufficient or bad credit? Or even no credit
file? Checking your credit rating may arm you with important ammunition to fight
back. Perhaps you have other credit transactions that do not appear on your
credit report. Transactions that would improve your credit if they were
included. You can petition those companies to send in your credit information,
and raise your rating. You can get errors removed by using a dispute letter.
The point is, don't just sit there... get out the DDT!
With a great credit rating, your life will be so much smoother. That's why it's
something that people who know about personal finances do everything they can to
arrange it. A couple of generations ago, cash money transactions were considered
the most honorable manner to buy, with personal checks being used for the
high-ticket purchases.
Plastic was the last resort. These days, if you use your credit card(s) wisely,
you are building a personal financial profile that shows the people you do
business with they can trust you. A healthy, active credit rating is a sure sign
of someone who knows how to manage his or her money.
A better credit rating means lower monthly payments on anything you buy on
credit or any loans you take out. If you possess an excellent credit report you
can even find any number of credit card companies who will happily grant you a
zero percent credit card!
What's a Good Credit Score, Anyway?
It's hard to figure out what exactly is a good or a poor credit score. The best
credit ratings are 770 points and up. Freddie Mac, for example, considers
anything above 770 an "A plus." A FICO score of over 750 will get you an
"excellent" rating from Lending Tree, while Fannie Mae says a 740 is excellent.
CBS reports that if you have a 720 or more, you have no worries at all, since
that number is in the same level category as an 800. Fair Isaac has declared
that anything over 700 is "golden." Even a person with a credit rating of 650 or
better is considered a prime borrower, as long as there are no records of late
payments on their record.
Do yourself and your future a favor. Check your credit rating on a regular
basis, and maintain its health they way you would tend the garden in your back
yard. It's not only worth it, these days, it's necessary!
About the Author:
Jake Rustenhoven is the webmaster of http://www.freebiecreditreport.com, a site full of informational articles on different credit report related topics such as this one. |
