Bad Credit Rating Importance

Home ownership is an aspiration of most middle class families today. Owning a home gives you a place which you can truly call your own. Unfortunately this dream cannot be realised by many people, and problems in securing loans due to a bad credit history is one of the main reasons for this.

Your credit record is established once you make your first loan application. A good credit rating is achieved if you are able to make all your repayments at regular intervals as stipulated in the initial contractual agreement you made on securing the loan or line of credit. However, late or defaulted payments of 90 days or more can be listed on your credit report and failure to keep up to date can result in a bad credit rating. The importance of a good credit rating cannot be underestimated as it is generally the deciding factor when lenders are considering a loan application.

For more information on 'the bad credit trap ' please see this article.