So many people these days have some sort of credit problem; it’s kind of like a statement of living – where it’s more the rule than the exception. Mortgage crash, economic decline, credit shortcomings, all these are bruising factors to someone’s credit score, but we all have to continue living and for most that means coping with a bad credit history. While it’s true that this can have negative effects on what you can or can’t do regarding credit, it’s not the end of the world, and shouldn’t be looked on as such.
Your credit score is composed of 3 main elements; what you have bought on credit in the past, how you approached that credit issue and how you have dealt with, and continue to deal with, those credit issues. Frankly it’s harder in today’s U.S. to get credit with no credit history than to get credit with a bad credit history, so it’s just not about how much you have on credit, it’s all about what you’ve done with it. For most of us this means paying off credit card bills and the like, while others have detrimental issues such as repo’s or mortgage defaults to deal with.
While the latter two items may sound like a death knell for your credit itself, that’s no longer true. By doing such simple things as reporting your current bill payments (like gas, electric, phone etc.) to the credit agencies themselves you can greatly increase your credit score without too much out of pocket expense, and they really do have a positive impact on your bad credit history.
So many people have these problems that it’s not too surprising that the government, in its wisdom, has also stepped up in order to protect all Americans with these problems. Simple things such as no longer requiring a 5 gap between previous bad credit history and the present regarding bankruptcy, no longer disallowing mortgage applications from those who have suffered repossessions and the like all make life a little easier for all of us to deal with.
It may not be much, but the truth is that there’s no longer a terrible stigma attached to having had a bad credit history, and with the way companies are being more willing to entertain people who have had those problems in the past, things are certainly looking for all and sundry for the future.