CreditSources.org Ranks the Top Three Must-Know Credit Facts

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CreditSources.org (http://www.CreditSources.org) personal finance editors have declared the top three things everyone should understand about credit.

There is always an opportunity for a consumer to build credit. Although debt and missed payments can stick around on a credit report for eight to ten years, a consumer can still increase credit by making timely payments and using credit.

Today, CreditSources.org, a website dedicated to cash advance options for people with poor and no credit, released the most important facts about credit scores. Consumers often turn a blind eye to their credit scores and reports, so Credit Source has offered some simple information on credit to help consumers gather a better understanding of their personal finances.

1. Bad Credit Can Have Negative Implications
Lenders consider consumers with bad credit to be risky applicants. Bad credit is like a red flag, alerting the lender that there has been some inconsistency in the consumer’s credit history. Sometimes lenders will refuse those with poor credit history the opportunity to borrow money, fearing that they won’t make payments in a timely manner.

Other times lenders won’t accept the applicant at all. In this case, consumers with low credit scores who are denied from traditional lenders may look into bad credit loan options. While such loans do offer those with poor credit an outlet during an emergency financial situation, unsecured personal loans usually will have high interest rates tacked on. Because of this, the consumer should only check out this option after learning and understanding all of the terms and conditions of the loan.

2. Credit Reports Can Contain Errors
The Federal Trade Commission recently published a study that revealed five percent of consumers had errors on at least one of their three major credit reports. Any incorrect information on a credit report could potentially bump down a consumer’s score resulting in a lower score. And just because it is an error doesn’t mean the consumer will be free from those negative effects of bad credit.

To prevent those negative effects, consumers should request their free credit reports from all three of the top credit bureaus once a year and check for any errors. If there are mistakes, they should immediately contact the credit bureau to report the problem.

3. There's Always Room for Credit Repair
There is always an opportunity for a consumer to build credit. Although debt and missed payments can stick around on a credit report for eight to ten years, a consumer can still increase credit by making timely payments and using credit.

Because payment history makes up roughly 35% of a credit report with the FICO scoring method, paying bills on time can help improve a score. And even though it may be difficult to apply for a traditional credit card with poor or no credit, a consumer can receive access to similar options such as in store credit cards, secured credit cards, and credit cards with co-signers, all of which can help rebuild credit.

About CreditSources.org
CreditSources.org is a leading authority site on credit related consumer services, personal finance, unsecured personal loans for people with poor and bad credit, credit sources, credit cards, and all things credit.

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Chloe Mulliner
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