How Credit Reports Ruin Your Life
Contributed by Kristy George
What is a Credit Report
Some people have never thought about credit reports. Credit reports are basically an itemization of your life. They list every credit card or loan of any kind that you posses. There are people who know every line of their credit report by heart, while others a credit report means nothing. Why is credit reports important? Because they can ruin your life.
The Credit Cycle Begins
One day you get the mail and notice an offer for a credit card. You fill out the application and send it in, and then forget about it. A few weeks later a credit card with your name on it appears in your mailbox and the cycle begins. You now have a credit card listed on your credit report. Then more and more offers for credit cards start to pour in.
Five years in the future you have several credit cards and loans. Your credit report is full of revolving credit. Revolving credit is credit cards that you may charge on as long as you do not exceed the limit. You may have student or auto loans listed on your credit report as well. Next to each item listed is a history of how you pay them. Meaning every time you miss a payment it is in writing on your credit report. Then you try to get a house.
Trying to get a house with a bad credit report
Going to a bank to receive credit for a house loan depends totally on your credit report score. If you have missed payments to creditors this will result in a lower credit bureau score and you may not be able to get a loan. If you miss payments creditors also start calling and harassing you for payment. These simple missed payments may result in you renting for the rest of your life.
