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Benefits of Maintaining Good Credit

It has always been ingrained in me that you need good credit-history. I used to ask my dad “Why does my credit have to be good?” “Why can’t I just pay in Cash?” He told me, you need to establish a credit-rating so that it would show on my credit bureau report. That is when I decided to get my first creditcard. I was a student and was reluctant to use the card initially, later on when there was cash crunch I started using it. Over the years, my balance grew and grew. I found myself with a huge chunk to pay off post-education. Paying minimum dues was never enough and I was not aware of this. Later on my dad cleared the major portion of the bill. Marktplatz für Drogen

Recently, Obama administration passed a bill on Credit Card Accountability, Responsibility, and Disclosure Act of 2009. It restricted signing up for a creditcard until you are 21 years of age or you have a spouse or a guardian co-signing for you.

Maintaining Good Credit

Credit scores reflect the long-term pattern of credit use and repayment history. The scores improve as your overall credit picture gets better. The best way to maintain a good credit history is by following a few tips given below.

– Always pay your bills on time.

– Keep creditcard balances low.

– Periodically check for any inaccuracies in your credit-report.

– If there are any inaccuracies correct them in all the three national credit-bureaus. Never let the errors be fixed by the credit-fixing agencies.

– Reduce the number of times the creditors are given permission to check your credit records. Such checks are known as “inquiries.” It can blemish your record.

Remember the credit-scores are not going to remain the same forever. You can repair them by clearing off the credit and other loans on time.

Benefits of Good Credit

– Easy to avail loan at lower rate of interest – When you have a good credit history, the lenders including the banks will not hesitate to process your loan request. A glance at your credit-report will let them know whether you are reliable borrower or not.

– Processing is faster- A good credit-record means your loans will be processed faster and some financial institution may even waive off the processing charges.

– Better Chance of Employment-One of the scales on which your employers will assess you is your credit-record. When they check your financial background, if they see your credit-report is showing positive signs, they will know you are a responsible and reliable person.