Reasons Why You Have A Bad Credit History

There are many reasons why you may have bad credit history. Many people might believe it is due to late payment only.

Why do you have a bad credit history?

We will introduce you to the different reasons why you may have a bad credit history and you can enter the Clearing of reports.

Do not pay your card on time

This is one of the main reasons why you have a bad credit history and enter the Clearing reports. Probably this month could not be managed properly with the payments you have to make. Another reason is that you spend more than you can afford.

If you have not had a budget, then you will not know how much money you can pay on credit. It is important that you learn to differentiate the needs from the whims since you can very easily end up spending others.

The cards can not only be credit, they can also be from department stores.

Being a co-signer of another person

Many times the result of bad credit history is not entirely up to you. Maybe he wanted to be a good person by agreeing to be a guarantee for a friend or relative.

Before accepting to be a co-signer or endorser of someone, you must keep in mind how the person is in terms of their financial responsibilities. If you know that the person does not pay on time then you should be prepared to deal with the responsibility of your friend or relative, all in case you accept to be collateral.

Do not repay loans on time

It can certainly be the very similar credit card, but personal loans have a multitude of uses. Even so, this month is probably not enough to deal with timely payments, or interest rates are too high.

You should try to find ways to get rid of your debts. You can unify all the other loans in a single one whose interest rate is easier to pay.

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Does not settle mobile phone plans

Many people do not know it, but having debts with your mobile phone company can get you to clearing reports. All this because it is considered a type of credit.

If you have just purchased a new mobile phone to be fashionable, you’d better reconsider hiring a plan. Often times it is not given full use of the data plans, calls or messages included in the plan. For this case, it is probably best to pay the amount of data messages or calls you will actually use.

We have always recommended avoiding borrowing by technology or mobile devices. In what you end up paying the devices probably already exists one or two models more advanced than the one that is paying at the moment. Many times this makes you continue to borrow more to get more recent models.

Identity Theft

You should be aware of the movements and transactions that are recorded on your cards. This in order to be able to identify movements that you have not done. Since you could be a victim of identity theft or a scam.

This happens more often than you think, it should not be a famous person or millionaire to be a victim of such crimes. Your card could be cloned at any facility that accepts them. They could possibly steal your wallet or purse. Whatever the case, they have access to your financial information and personal data, which is enough to make use of your money.

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