Credit management determines credit opportunities
May 23rd, 2007, , Bankruptcy, Credit Card No CommentsHow well you manage your credit can play a big part in your future credit opportunities. Creditors and lenders may review your credit report and score to evaluate your creditworthiness.
Generally, the higher the credit score, the lower the credit risk – and essentially, the more likely you are considered to be responsible with your financial obligations.
Generally, people with higher scores tend to receive more favorable credit terms and interest rates than those with lower scores. Likewise, studies have shown that higher available limits are typically given to those with good credit and higher credit scores.
This places consumers in the precarious position of having a large amount of credit available at their disposal, which could lead to accruing more debt.
Your credit score may also indicate signs of financial trouble. Negative account information on your credit report can seriously affect your credit score.
One of the most damaging forms of negative information is having a bankruptcy on your report.
