Chances are, you already know the basics of credit. Credit is that invisible force that ruins lives, fuels TV advertisements, and makes the economy go round. How can something so good (the same thing that buys nice dinners, DVDs and the revolutionary George Foreman Grill) also wind up costing people their right to buy, drive, own property and enjoy life in peace?
The very nature of credit encourages impulse buying. Rather than view credit as something you have, it helps to view credit as a note. Whatever you buy with credit is actually a balance that you are waiting to pay. Of course, this lesson is lost on a generation that is commanded by TV and Internet advertisements to “buy now.”
Managing credit can be difficult. There are many factors that can disqualify you from a “creditworthy rating.” Not only must you be aware of debt and delinquency, but you also have to watch late payments, surpassing the credit limit, and the credit to debt ratio.
Once you fall behind on your payments, you will start paying a high amount of interest to the point where your balance stalls. Eventually, you fall into debt and everything good in life will be taken away from you: the right to drive a car, the right to own a house, the right to hold a bank account and even to rent a nice apartment.
Instead of leaving your credit rating to chance, why not take steps to monitor your file? You might want to invest in a credit-reporting agency so you can get your full credit report online. Keeping up to date with your credit file allows you to open a disputes case if and when you notice an error. Consumers are advised to check their credit report regularly. You never know when someone is stealing your card number, or if a store is making an error on your file until you look for such notifications. Instead of letting these blemishes remain on your file, dispute the charges and hold on to what is yours.