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Don’t you even think that you can slide your bad credit by a potential creditor because any potential creditor knows more about YOUR FINANCIAL STATUS than you would ever care to admit.
How is this possible?
Well, through the ever so revealing Personal Credit Report.
Your Personal Credit Report is just one of the tools that all creditors use to evaluate your financial ability to take on any new debt and rate your propensity for you to pay back any new loan that you are requesting.
IN FACT, Potential Creditors (that you have applied for a loan with) are not the only ones looking at your credit report.
If you have any current creditors, they also have reason to take a look at your credit report from time-to-time to see if there has been any change in your financial situation.
If there has been any NEGATIVE change, such as missing a payment or being late with another creditor, your current creditors will use this information to determine if they should lower your credit limit to protect themselves or raise your interest rate because you have become a high-risk-borrower, at worst, they may even determine to cancel your credit privileges.
In some instances, if a creditor sees a POSITIVE change in your financial situation, such as paying down your debt or an increase in salary or a career change into a more lucrative industry, you may be pleasantly surprised to get an offer from the credit company to raise your credit limit and the credit company may even take action to lower your current interest rate.
You see, credit reports reveal plenty of useful personal and financial information about you to help creditors in their decisions to extend credit or deny credit, such as how long you have been at your current job, your income level, whether your job is stable or if the particular industry that you are working in is destined for potential growth or potential downturn.
Creditors can calculate your debt-to-income-ratio (DTI) partially based on the wealth of information on your credit report, such as your limits and balances on credit cards, auto loans, mortgages, rents, personal loans, gas cards, and more.
As you might expect, your credit report also reveals any late payments, past due accounts, creditor write offs, defaults, repossessions, bankruptcies and judgments.
Credit reports also reveal your assets (and creditors just love borrowers with assets) because they can use these assets to secure certain types of loans, if necessary, as a condition for approving a loan.
All of this wealth of information is revealed through your credit report and creditors will use all of this information to evaluate if you are the type of person who has the ability to re-pay the amount of money that you are requesting.
If that were not enough, potential and current employers also have the right to take a look at your credit report.
Potential Employers may take a look at your credit report to make an evaluation of your personal character, based on how you meet your financial obligations.
Current Employers may take a look at your credit report to evaluate whether your financial situation remains stable, or if any negative financial changes have taken affect in your life, which may put the company in jeopardy and at some risk.
This may be detrimental to your career if you are employed in a position that handles currency; such as a cashier, bank teller, stock trader or an accountant.
Of course, no employer may view your personal credit report without written authorization from you. However, if you refuse to give authorization, this may count against you as well.
Are you beginning to understand why it is so very important to have a good credit report and to repair any negative items on your credit report before you submit any application for credit or apply for a lucrative job that pays over $75,000.00 in annual salary?
I sure hope that you do, and if you have a bad credit report, I hope that you begin to face your situation and start right now to do something about it.
Goodwill Credit can help turn your bad credit into good credit and make your good credit even better. SUBSCRIBE NOW.
