Not looking after your credit score if one of the dumbest things you can do. It will damage
your future ability to finance anything and make your life quite miserable if you are not careful. Fundamental loan products such as car loans or
home loans will be denied and your quality of life will be reduced substantially.
Some people do not think that this is a problem but probably due to them not having to apply
for a loan yet. They have not felt the pinch of not being able to purchase an item just because of their past financial mistakes which creates
their current bad credit score. The feeling of dreaming for a car or a home but only to have the dream dashed right before your obtain the item
can be extremely painful and disappointing to say the least.
Although most of us would have made a few errors when it comes to maintaining our credit
history there are still improvements to be made. It is important to realize that it is your credit score which determines your creditworthiness
and it is thus vitally important to get your figure up before actually applying for a loan. Any lender will obtain your FICO score from the 3
reporting agencies for consideration.
We recommend that any borrower should obtain a copy of their credit report at least a few
months before applying for a loan. The idea is so that you can look through your credit score and see if there are any areas where you can
improve on significantly or even close some accounts which are still being wrongly indicated as still owing (e.g. a overdue charge for a parking
ticket etc) which can negatively impact your credit score.
It should be noted that 70% of credit reports have errors in them and it is actually up to the
owner of the credit report to make the corrections, not up to the reporting agencies. The worst thing is to have a loan denied due to a mistake
in your credit report which you did not correct beforehand. Remember that the due diligence on the credit report is up to you and could mean the
difference between and approval or a denied loan.
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