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Credit Questions and Answers

By: Matthew Stollinas

The following questions can guide you in dealing with poor credit ratings or bad debt, regardless of whether this is your first experience with credit or if you already have established credit that is preventing you from buying a home. Although it can be daunting to face the task of fixing bad credit, it can be accomplished with some work and research. Below are listed various questions, and their answers, that frequently arise when credit is the subject.

What should I consider when getting my first credit card?

To start with you should sit down and do a quick self evaluation. Are you the type of person who frequently procrastinates? Do you have a solid job at the moment that will allow you to pay your credit card bill on a monthly basis? Why do you want a credit card at all? If you are a student you may be getting a lot of offers from companies who want to give you that first card, but remember that this is not "free money" and shouldn't be treated as such. The biggest question of all should really be: are you responsible enough to have a credit card?

If employers are doing credit checks, should I totally rule out applying for a government job if I have bad credit?

Ironically enough, a governmental job is the least likely to use your bad credit against you. Unless you are applying for a job that requires high security or the handling of cash, they will only use it to verify employment history and to make sure your social security number is valid. You should be more concerned if you have any kind of criminal record. Finding credit mishaps are no indication of whether or not an employee will steal, however a series of bounced checks might be another story.

Something must have adversely affected my credit recently, because it was great last week.

Without even knowing it is happening, there are quite a few things that cause your credit to take a dive. The beginning is an inquiry. Possibly companies like utility, mortgage, and credit cards have requested to see your credit information. It takes months for information to show up, so it won't necessarily be there if you've done something about your rating recently. Not dealing with your bills in a timely fashion is one more evident example. Charge offs might be another reason for having bad credit. When you have not paid and do not appear to ever be paying a bill a company may do a charge off for the debt. Your incompetence will be written off as a loss by the company on their books for their taxes.

Will I still be able to purchase a home with bad credit?

It won't be as easy as if you had good credit, but it is possible. We all suffer setbacks in life and sometimes an illness or loss of a job isn't entirely our fault. We may have even done some hard work to get our credit back on track after the difficulties, but that stain still lingers on our credit report and always will. You have already taken the first step in securing a home loan: you have tried to get your credit back on track. The best thing you can do for yourself is to order a credit report and go over it very carefully. Look for any discrepancies and contact the companies you might have discrepancies with. Once these are cleared up, you can request a new report sent out to all of your creditors.

Article Source: http://www.articlemarketing.org

Matthew Stollinas is no stranger to debt. After a year of unemployment, his credit was a mess and debt seemed insurmountable. That’s when he decided to go to non-profit credit counselors at Family Life Credit. Their Christian financial counseling experts were able to help him form a plan to get his finances squared away and his life back in order.

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