Has it been a long time since you last checked your credit rating? You know you have less than perfect credit score when you start getting subtle (and sometimes obvious) hints from your surroundings. Here are some indications that point to the fact that your credit is broken and in need of repair.
You are having difficulty finding a job Most employers will check your credit score during the preliminary hiring rounds. This is especially true when you’re applying for executive positions. Having bad credit and not doing anything about it can keep you from getting the job that you want. One thing you can do in such a case is to apply for a position in an organization that does not conduct credit checks; of course this is not a very intelligent solution. A much better approach is to just get to the root of the problem and take steps to repair the credit score.
You are getting constant debt collection calls Creditors get assistance from debt collectors when they have been trying to get you to pay your bills and have not been successful. Your credit report will later show these collection accounts in turn reducing your chances of getting a loan or another card at a decent interest rate. To undo the damage, you either have to pay off these collection accounts or dispute the information on the credit report if they don’t belong to you.
No one is willing to co-sign your loans Getting a loan on your own is mostly out of the question when you have a low credit score. But you know you’re really hitting the bottom on the scale when you can’t even get your family or friends to co-sign your loan. The only way you’re going to get a loan post such a scenario is when you make a plan and repair your credit back to a more acceptable level.
Your credit card application got rejected If your application for a new credit card recently got rejected, one of the possible reasons could be that perhaps your current credit score doesn’t match the lender’s criteria for approval. The good thing is that you need not be in the dark wondering why you were denied a credit card. Credit car companies are required to send you an adverse action notice informing you of the specific reason why your application was rejected. And, if you were denied the card based on the information in your credit report, you are entitled to a free copy of the report.
It’s increasingly difficult to find good interest rates There are two parts to this. First, you will realize that you are unable to get a decent interest rate on a car loan, home loan or a new credit card. Second, your credit report may cause your lender to increase the interest rates on your existing loans. When any event occurs that lowers your credit score, for example if you miss a payment, you might get an interest rate increase letter. You can get the best possible interest rates on your loans if you maintain your credit score in an optimum range (between 680 and 800).
Have a low credit score This one is no tell-tale sign, it’s a scale specifically designed to let you know how high or how low your score is. It ranges from 300 to 850, 300 being extremely poor and 850 being extremely good. A score above 700 means that your credit is good or at least above average. On the other hand if your score dips below 620, it means that you should start thinking about ways to make it better. Either on your own or by taking the help of professional credit repair services.