Good vs. bad credit: Why is this important?

Credit, especially good credit, is very important. It affects almost every major buying decision. Good credit can help us get a good rate on a credit card, car loan or home mortgage. It can also help us when it comes time to sign an apartment lease agreement or maybe even get a new job. But how do you get good credit?

Getting good credit - To get good credit, you have to have credit. Good credit ratings are gained when you borrow money and pay it back on time and for the full amount. Let's say you have a credit card from a gas station that you use only for gas because you don't carry a lot of cash around. Each time you go to the station, you use your card to fill up your car. In so doing, you are promising to pay the credit card company back when you get its statement. When the statement arrives, you pay off the amount owed on time. The gas company that issued your card then reports to a credit bureau that you have paid on time and for the right amount. The more good reports that go to the credit bureau, the better your credit.

Benefits of good credit - Having a good credit report enables you to borrow more money at better interest rates. Why? Because the banks know that based on your credit history you are a responsible person. Many potential employers also look at credit reports as a way to judge a person’s responsibility. Hence, your good credit may even help you land a new job.

There is nothing good about bad credit. It is the exact opposite of good credit. While good credit helps you qualify for car and home mortgage loans, bad credit could keep you from being able to buy these large-dollar items. It will also keep you from qualifying for credit cards and may possibly hinder your ability to rent a house or apartment.

Getting bad credit - It is very easy to get bad credit. Bad credit ratings happen when a person does not pay back money borrowed on time or when that person simply doesn’t pay it back at all. There are varying degrees of bad credit. A person is not automatically given a bad credit rating if he misses a payment or is late a time or two. However, if a person is continually late or he does not make a payment for several months, his credit rating will be affected and could possible hurt him in the future.

Understanding your credit report will help you determine if there are errors. It will also make you aware of what steps you need to take to improve your credit.

Where to get credit if you have bad credit

Getting credit to repair bad credit or establish credit can be a difficult task when most lenders are not willing to give you a second chance or let you prove yourself credit worthy.

I can show you:

How to get banks and credit card companies to PAY OFF up to 100% of your debt while preserving your credit rating (you won't want to miss out on this one!)

Three simple secrets to start getting dozens of "Pre-Approved" credit cards in your mail box (powerful facts about how cell phones, mail boxes and moving affect your credit report!)

Why paying off your credit cards in full each month actually gives you LESS credit (learn exactly how much to charge and how much to pay each month to build your credit as fast as possible!)

For more information about fixing bad credit see:


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