4 Things: What Does Bad Credit Say About a Person?
Your credit score is something like a digital fingerprint: it can tell people more about you than what meets the eyes. So, if that’s the case, what does a bad credit say about a person?
Well as you’d imagine, a bad credit score doesn't convey too much good.
From past bankruptcies to housing evictions, a bad credit score can make you look like you’re financially irresponsible.
How Does a Bad Credit Score Make Me Look?
There’s a lot behind someone with a bad credit score. While the specifics can vary, below are a few general truths:
Want Help Removing Items Off Your Credit Report?
You Can’t Pay a Bill On Time
Paying your bills on time plays a huge role in your credit score. Thus, a bad credit score means you’re not too punctual with payments.
You’ve Filed Bankruptcy in the Past
Poor credit scores and bankruptcy filings go hand in hand. Those who've filed for bankruptcy in the past usually have sub 600 credit scores. If your credit score is less than stellar, it could mean you’ve filed bankruptcy sometime in the past.
You Get Called by Creditors Non-stop
The odds are that if you have a bad credit score, more than a few creditors are trying to get in touch with you. These calls can come at all hours of the day and night, hounding you to settle debts.
However, some of these “robocalls” can be spam. If you decide to move forward with a collection agency, make sure it’s for a debt you, in fact, owe.
And, in writing, confirm your payments will go toward that debt.
You’ve Had a House Foreclosed on at Some Time in Your Life
Foreclosure can take a considerable toll on your credit score. People who have “very poor” to “poor” credit scores, as described by FICO, may have had to lose their home to the courts.
Even worse, having a foreclosure on your credit report can make it difficult to rent, as well.
What Are the Ways a Negative Credit Report Affect Your Financial Goals?
Having a bad credit score can impede your future financial success. If you wish to buy a home, a bad credit score may make it difficult to be approved for a mortgage. Also, other large loans, like auto loans, can be equally hard to get and may require the need for a cosigner.
Another little-known fact about credit scores is that hiring companies to check them. So that bad credit score you’ve had for years could get in the way of the dream job you want.
Get Your Credit Score Up, and Enjoy a Brighter Financial Future
Thankfully, there are concrete things you can do to get your credit up. Here are some of the best things you can improve your credit score:
- Pay your bills on time.
- Take care of past debts.
- Check your credit report for mistakes.
- Use credit repair companies like Lexington Law,
- Track your score with credit monitoring services with Credit Karma or Credit Sesame (Here is how the last two compare)
- Keep your credit line in good shape.
- Make your available credit balance higher.
Doing those credit building steps above will not only help raise your credit score but make you look better as a person, as well. It’s a win-win situation.