Bad credit

With all of the talk about bad credit, it is remiss that there is no financial professional that really talks about what bad credit actually is. All the general public really knows about bad credit is that it can keep you from getting the things that you want. Therefore you had better do everything you can to keep from having bad credit.This is a message on which many billions of dollars are spent. The spenders are the credit card companies and banks who benefit from scaring you into believing that your credit score = your life. Although your credit score is very important, and bad credit is definitely something to be avoided if possible, you must learn how to negotiate your way around credit in general. Everyone makes financial mistakes; having bad credit is not necessarily the end of the world.

It is first essential to understand who defines bad credit.

Credit ratings are kept by three major credit agencies. They have a system for calculating your ability and willingness to pay back loans based on your past behavior. They do not take into account extenuating circumstances. They deal with pure mathematics, and they are much more likely to believe credit inquiries and reports from creditors than they are to believe stories from the borrowers.

Most people do not have the time to fight a negative credit reports given to a credit agency by a creditor. It takes a great deal of time that many people simply cannot afford. For this reason alone, many people simply let some credit marks linger on their record without even trying to fix them. They also let many mistakes stay on their record. The credit rating agencies are far from perfect. They sometimes mix up Social Security numbers and people with similar names.

Your credit score can be anywhere from 350 to a high of 800. A score of 350 is dismal; a score of 800 is perfect. It is almost impossible to get a perfect credit score. Although there is no official number for bad credit, most lenders will begin to express concerns about your credit around a score of 600. You may have a great deal of trouble getting a loan for a large asset around 500.