As we grow up, we hear it more often than not; Don’t use too much credit, do not open too many credit cards, don’t miss any payments, do not spend more than you can afford, avoid paying with credit if you have the cash, etc.

We are told all about the negative consequences of having bad credit. But what about the advantages of good credit? What does having good credit do for you?

To start, we want to learn how to establish good or excellent credit, and to do that we need to understand what factors composes our credit score. First, more than a third of our score, 35% of it, is related to Payment History. In other words, how are our payments handled; Are they on time? are there some late payments? collection, repossessions, or charged off accounts? Every single entry on any give account in your credit report has its own weight, for either good or bad. Next, the second largest factor in your credit score is Amounts Owed. This aspect of your credit composes 30% of your score, and measures how much you owe in comparison to how much creditor approved you for. It is recommend to keep this ratio below 10% to maximize the improvement of your points. Another factor that plays a big role in your credit is Length Of Credit History, 15%, in other words how long have your accounts been open for – the longer the better. A fourth factor is New Credit (accounts recently acquired), which accounts for 10% of your overall credit score. This includes any recent accounts that you may have applied for and opened. And the remaining 10% factor is Types Of Credit or Credit Mix – basically your experience with different types of accounts.

Now that we understand how to have a healthy credit file, why is this so important? We see it time and time again, consumers missing out on the best deals, the biggest savings and the best credit rewards. Not to mention, that not having good credit could potentially hinder your ability to being able to buy that house your family wants, not being able to get that loan you need for an emergency, or even not be able to get the job you have worked so hard for. Creditors, like banks and finance institutions, see credit reports and scores as a way to analyze the probability they will be able to recover the money they lend to an individual. Employers see credit scores and reports as a measure of responsibility and possible risk to their organization.

Don’t miss out on great opportunities because o bad credit history.

Don’t let the horror stories of bad credit disillusion your best dreams. Make your dreams reality with good credit. Here at Credit Services of America, we have seen the joy and peace of mind our clients have when their credit starts improving. Many of our clients have come back to express their gratitude for being able to get that house they so much dreamt about, some have come in to show us off their new cars they recently acquired, and many clients have expressed how they are glad we were able to help out with their dream job!

A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!

*Individual results may vary. Please call for more details and to discuss your own individual situation.