Having Good Credit in America

Having a high credit score in America is one of the most important benefits of living in a consumer economy that you could possess. I make this statement after having numerous conversations with individuals that do not have stellar credit scores.

The United States and its economy system is fueled by commerce. This is as plain a statement that I could make in describing our system. Many Americans tend to take this for granted. Products of any and every type are constantly being blasted across every type of media outlet to coax you into purchasing that "must have" item. I want to put commerce and personal credit into a different light. How does having bad credit affect the way you live in a market based economy? Its easy to see the benefits of good credit, but what about poor credit? Maybe, you will see how it affects you and take measures to fix credit problems that hamper your life. The many tips and strategies that I suggest are sound and time tested means to improve your credit score over a course of time. Repairing bad credit takes both time and effort. When I am done, hopefully, you will have a much better understanding of the need to rebuild your credit. I will include the efforts of my oldest sister who gave me a real life example of boosting her credit to a limit that allowed her and my brother in law to do some remarkable things.

Simply put, the 3 credit bureaus (Equifax, Trans Union and Experian) can be your best friend or worst enemy in your efforts to fix your credit. The first step in becoming a gold plated citizen is to contact the three bureaus for a copy of your credit report. The law now allows you to obtain a free copy of your credit report one time per year. Since each credit bureau usually have the same information reporting, I want you to stagger your request over a four month period in order to get the greatest benefit from their service. This will allow you to see the progress that you are making in repairing your credit.

After reviewing the symptoms its time to make the diagnosis. Usually a person with poor credit will possess certain problems which include: late payments and high balances. Something that can be cured, but will require diligence on the part of the individual. You will than select one or all the items that you can pay off in the next couple of months. I find that many individuals with bad credit have nagging problems such as judgments and liens for small amounts that total less than $1,500 that can be resolved. Once these "small thorns" are addressed, you will begin to see some success in your credit efforts.

In Part 2, I will discuss some of the benefits that you reap from having a good credit score in a market based economy.