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What is bad credit?

When people talk about bad credit, what they mean is that they have an unfavorable credit rating or unfavorable items on their credit report that makes it difficult and expensive to obtain new credit. When you find yourself falling behind on payments or are rejected for credit that you apply for, you should review your credit report. In fact, it is a wise policy to review your credit report at least twice a year. On Point Credit offers many solutions to improve your credit. We begin by examining your credit report. Your credit report is like your report card in school. It sums up who you are in the eyes of your creditors.

Credit Reporting Agency

Credit Reporting flagencies are large corporations that make money by compiling financial information about you and selling it to potential lenders.  Anyone who has ever applied for a loan or credit of any kind will have a credit file with each of the major credit reporting agencies. A credit report lists: personal data, employment, debts and credit cards. The information is taken from credit applications you have completed as well as from reports your creditors make about how well you meet your obligations.

Your Credit Report

Your credit report shows your entire financial life on paper. It lists your Social Security number, current and past addresses, employment, loans, credit cards, mortgages, and all other debts. It shows what accounts are paid in full, which are late, which are in collection, as well as liens against you and any bankruptcy you may have filed. Whenever you apply for a loan or credit card, your credit report is examined by the potential creditor. The report rates your financial status, and the creditor uses it to decide how likely it is you will pay back money you borrow. If your credit report shows many delinquent accounts, a bankruptcy, or an extensive amount of loans, you are a bad credit risk. Creditors, employers, landlords and insurance companies all use your credit report. Since you are judged almost solely on the basis of your credit report, you need to make sure it is accurate. On Point Credit can help.

What We Will Teach You About Credit

We will teach you the importance of having good credit and what it can do to improve your personal and business financial situations. Please call for more information about our business and personal counseling services.