Credit Help: Good Credit vs. Bad Credit
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Everyone talks about good credit and bad credit, but what exactly is the difference? This article explains by discussing the age old topic of good credit vs. bad credit.
Credit is a very important aspect of our society. Everyone is judged based upon their credit history. Lenders, creditors, landlords, insurance companies, and employers look at the state of someone's credit to determine their future. Here are differences of good credit vs. bad credit:
Good Credit
The only way to get good credit, is by establishing accounts and paying any money that is due on time, every time (or at least most of the time). By establishing a good credit history, you show everyone that you are a responsible debtor. This will make it much easier to finance a home, auto, or other expenditures. It will also make you eligible for lower insurance rates and lower loan rates. If a potential employer is gauging your level of responsibility based on your credit report, good credit will help you to land the job.
Bad Credit
Bad credit is the exact opposite of good credit. If you don't pay your bills on time or at all, you will end up with bad credit. A bad credit history can make getting a loan, an apartment, and a job very difficult. You may also be required to pay higher rates on your insurance, or worse yet, be turned down for coverage.
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