I decided to sign up for credit monitoring at www.myfico.com, One invaluable lesson I taught my daughter is that she must guard her credit as she would her life.
Why?
Because in the United States your credit score will determine what kinds of loans you will get (if any) and at what rate.
There are many helpful sites to monitor your credit score and this is one of them:
Payment History Tips
- Pay your bills on time. (no kidding)
Delinquent payments and collections can have a major negative impact on your FICO score. - If you have missed payments, get current and stay current.
The longer you pay your bills on time, the better your credit score. - Be aware that paying off a collection account will not remove it from your credit report.
It will stay on your report for seven years. - If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor.
This won’t improve your credit score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.
Collectors only have a certain amount of time to sue you for payments. The first thing you should do is determine if the statute of limitations for collecting a debt in your state have past. If the debt is older than the statute of limitations, tell the bill collectors they are wasting their time by harassing you for an uncollectable debt, as the original creditor or the assigned collection agency cannot take you to court to get a judgement. To see the time limitations on the different kinds of debt, check here.
After 7 seven years (in most cases), a negative mark and the related collections will disappear from your credit report. If the debt has gone unpaid for 7 years, then it can no longer legally remain on your credit report. You can challenge this listing on your credit report and it will come off. Please note: the amount of time a late payment can appear on your credit report has nothing to do with the statute of limitations. Very important distinction. Even though a debt may no longer legally appear on your credit report after 7 years, you could still be sued for the debt if the statute of limitations for your debt in your state is not up. To see how long a negative item remains on your report, click here. ______________________________________________________
It is so important to keep track of your credit, not to overspend and be responsible. It isn’t the taxpayer’s responsibility to bail you out because you took on a risky loan through a questionable lender. If you cannot obtain an honest loan through a reputable lender/bank then DON’T get one until your credit is FIXED…(though I could see this concept being applied on a larger scale to inconsiderate suits on Wall Street who took our hard earned tax dollars because of their bumbling messes-ok ok I digress)……..in the end you have no one to blame but yourself if you don’t monitor your spending habits.
PERIOD!
Having a good credit score DOES save your sanity because it shows you are responsible for one, if you decide to buy a house/car you will receive a favorable interest rate and lastly, peace of mind is simply priceless!!
Order your free credit reports (Once a year) from all 3 credit bureaus (wish we could stick to ONE!) here
Learn how to settle debts here
Life in These United States 