Have you made the mistake of not paying attention to credit?

Did you know that most employers check your credit before they make you a job offer?  At financial institutions, if you have bad credit they may not hire you at all.  I've heard of people being hired, and then fired immediately after the company ran their credit report.  Please pay your bills on time.  If you don't it will show up on your credit, and if you move you may have to pay a deposit, be denied service, or be required to get a co-signer to get utilities turned on at your new residence.

Why do you think so many people are living in pay-by-the-week studios or renting rooms?  Bad credit!  Do you think it can't happen to you?  You can lose your job, get evicted, your home foreclosed, your car repossessed, not have emergency money reserved for hard times, and you can be in the same boat.  Life or irresponsibility catches up with us.  If you ever thought you were getting away with something when you didn't pay your bills, rent, taxes, a loan or car payment – you did not!  Your choices will come back to haunt you.  Bad money choices will show up in your credit report.  Your credit will affect how high your insurance premiums, mortgage or car interest and payments will be.   Worst yet, a bad mark on your credit can stay there for 7 to 10 years.  

The person looking at your credit report may not know you, but your report is a reflection of your character.  It shows them if you are responsible, mature, make wise decisions, how you manage your money, if they should take a chance with you financially or should you be hired.  Look at it this way, if you don't care about your own money, why will you care about someone else's?  You probably won't.    

There are some basic steps you can take to turn your credit around.  It won't happen overnight but it can be improved with effort on your part.

1. Get on a budget or spending plan
2. Quit using your credit cards and do not get more credit established
3. Call your creditors and work out new payment terms and conditions
4. Start paying all your bills on time each month
5. As you pay off bills, get a letter from the creditor stating you have a zero balance
6. Let the credit reporting agency know when a bill is paid off – send them proof
7. Ask the credit reporting agency to update your credit report or remove the bad mark  

Do you have any helpful suggestions to improve credit?

Sharman Lawson a columnist on Fabulously40, and a financial coach, speaker, and author of the book 12 Steps to Eliminate Debt Forever!