In a perfect world, you’d be able to purchase everything on the spot. But most people don’t have enough money to buy a car, a house, a college education, or sometimes even dinner.
That is why it’s crucial to have good credit. Your credit is a reflection of your financial responsibility and the risk you pose to someone who is entering into a loan, lease, or job agreement with you. PCS Debt Relief defines relevant terms and offers tips to perfect your credit goals:
Your credit report is a summary of your financial history including your payment of debts and other bills that can be made available to you, lenders, and employers. It also includes a list of previous inquiries into your credit history.
The information on your credit report can be used by landlords, lenders, insurers, and employers to determine your eligibility for loans, credit cards, rentals, insurance policies, jobs and mortgages.
You can receive one free credit report each year direct from each of the three nationwide consumer reporting credit agencies: Equifax, Experian, and TransUnion. You should take advantage of this each year in order to maximize your overall credit. Ensure the accuracy of the reports by comparing each credit report among the three agencies and against your own bank statements to dispute errors, such as payments documented as late that you actually paid on time.
Alternatively, a credit score is a single numerical value that takes into account all of the elements of your credit report. Depending on where you obtain your credit score, it could vary because each agency uses different scoring systems. Overall, the FICO score between 300 and 850 is the most common, with the best credit score being as close to 850 as possible.
A credit score is a quick “snapshot” used to assess the “risk” a lender is making when they offer you credit.
Credit in general is the all-encompassing term that takes into account all of the above as well as the loans, credit cards, and mortgages that you might be offered. When someone gives you credit in reference to financials, they are offering you a loan on the goodwill assumption (based on your credit history and credit score) that you will pay it back.
You may think the best way to have high credit is to avoid taking on loans, credit cards, and leases. But in fact, your credit history and credit score are built on your ability to take on these risks and manage them responsibly. A person who only buys things outright and never takes on loans will not generate much credit history, because what proof do they have that they are likely to pay back a loan?
Not having credit history is almost as bad as having poor credit. You may find yourself unable to obtain loans, rent a property, lease a car, or establish utilities in your name.
The time may come when you wish to buy a house but are unable to get approved for a mortgage. Not having credit can even disqualify you from obtaining a job.
Establish and increase your overall credit by taking out loans and credit cards within your means, making prompt and complete payments, and being mindful of credit inquiries.
At PCS, our programs are tailored to the client’s specific financial needs. What sets us apart from our competitors is that clients see relief, before any payment is received. Our NO UP-FRONT FEE policy ensures our client’s a 100% satisfaction guarantee. We also do not charge any monthly fees or any cancellation fees. We want the client to feel comfortable during the whole process which is why we allow them to be part of it every step of the way.
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