When problems with debt have ruined your credit history, it’s a good idea to start the process of rebuilding a good credit history, as soon as possible. Eventually, as the amount of positive information on your credit record increases, creditors will be more willing to lend you more credit.
New credit: Why would DebtBusters want you to owe money to creditors again?
Debt is not necessarily a bad thing. What distinguishes good debt from bad debt is the amount of money that you owe and the type of debt. Debt can be a positive force in your life and a valuable money management tool.
Having a credit history full of negative information limits your opportunities and makes it difficult to achieve your financial goals. Thus, it is important to borrow credit again, but ensure that debt repayments are made consistently, and not payment defaults occur.
Consequences of having a bad credit record:
- Insurance companies may not be willing to sell particular insurance products that may be a necessity. They may also charge higher rates for clients that are more likely to default on payments
- A potential employer may be unwilling to give you a job
- When looking to rent a place to live, landlords may be hesitant to rent out their place, if clients are facing financial difficulties.
For more information on how to get good credit back, read the following pages: