How bad is your bad credit? The good news is that Credit Solution Repair software can help you to get your credit back on track. But before you start that process, you'll need to know how relatively bad your credit is. Here are some of the main criteria that can help you to determine that:
1. Credit scores and credit reports
While "bad credit" is somewhat subjective, it is based on facts and figures: your credit score and credit reports. Obtaining both types of information is crucial before you start your quest to fix your bad credit. Your credit score indicates how likely you'd be able to repay borrowed money, based on your history of repaying borrowed money. Typically, the range of credit scores are from 350 to 850. The former figure is the worst credit score you could have, while the latter figure is the best credit score you could earn. While several credit bureaus exist worldwide, Equifax, Experian, and TransUnion are considered to be the industry leaders. A credit report includes the details that determine your credit score. They include various types of information related to debt, such as late payments.
2. Late payments
While late payments will impact your credit scores and credit reports, several factors determine to what extent that will happen. What types of payments were late? How late were the payments? How frequently have you made late payments? These types of factors will have a significant impact on how "bad" your credit is. An occasional late payment on your credit card bill is one thing. Making late mortgage payments every month is quite another thing.
3. Loan default
Defaulting on a loan means that you have failed to adhere to the repayment plan that you and the lender agreed to when you took out the loan. While defaulting on a single loan is not the end of the world per se, it is an important event that could have a major impact on your credit score and credit report. If you default on a loan, then it is absolutely, positively important for you to pay back the lender as soon as you can. You can choose one of several different actions, such as consolidating your debt. Fortunately, software packages such as Credit Solution Repair can help you to start repaying your debt and improving your credit score. The worst thing you can do after defaulting on a loan, is doing nothing. Instead, start finding ways to solve the problem.
4. Bankruptcy
Bankruptcy is a white flag of sorts, indicating that you or your business cannot repay your debts. It is important to realize that not all bankruptcies are the same type. While bankruptcy can give your credit history of clean slate, it can be devastating to your personal or business finances. Declaring bankruptcy can result in the closing of your business, and a decade-long blemish on your credit report. Bankruptcy should definitely be a last resort when your debt has become overwhelming.
Learn about the factors influencing your credit and understand how bad can it hurt your credit. This is the first step to rebuild it.
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