This article is provided and sponsored by:
ClearPoint Credit Counseling Solutions

Have you ever been turned down for a loan or an apartment lease and wondered why? It could be due to your credit history. Let’s face it–our credit says a lot about who we are. It is our financial report card, and can affect many aspects of our lives. Professional credit counselors at ClearPoint Credit Counseling Solutions agree that having a good credit history is imperative to leading a financially fit life.

Credit is defined as a contractual agreement between a lender and a borrower in which the borrower assumes something of value and agrees to repay the lender on a future date.

When you apply for credit, say a loan or a credit card, the lender will first decide if you are a good candidate. The lender’s decision is based heavily on your credit history. They have to assess the level of risk involved if they are to extend credit to you. If you have displayed a poor repayment history, it is less likely that you will be approved for the loan or a line of credit.

Even if you are approved, you may end up receiving a higher interest rate. Over the life of a mortgage or auto loan, higher interest rates will cost you thousands. If you plan to take out either of these types of loans or a new credit card, it would be wise to pull your credit reports to see where you stand and start making improvements now.

You may be surprised to learn that credit card companies aren’t the only ones checking your history. In fact, employers, landlords, and insurance companies can also gain access to your credit record. They are interested in reviewing your past payment history and spending habits to determine if you are a responsible financial consumer. If you have demonstrated an inconsistent payment history in the past, then this is an indication that you may do the same in the future.

It’s in your best interest to get your credit report in good shape. Do this by making payments on time and reducing your debt by paying off accounts whenever possible. If you run into a hardship, it’s always best to communicate with creditors and let them know what is going on. Doing so might just save your credit report from taking more damage.

If you are struggling with your credit, and if high interest rates are part of the problem, you might benefit from ClearPoint’s debt management program. Contact ClearPoint Credit Counseling solutions to learn more.


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