An Introduction to Bad Credit

A bad credit rating can come about in a range of ways, according to Yahoo!7Finance.

What can affect a credit rating?

Errors in personal information along with out of date information can quickly cause problems. It’s important for people to get a copy of their credit record and quickly correct out of date information.

Mistakes by lenders

Creditors can make mistakes that end up harming a borrower’s credit record. Creditors should be asked to rectify incorrect information and speak to their ombudsman if they are not happy with the response.

Late payments

It’s easy to fall behind on payments when juggling a range of accounts. Usually a bill has to fall at least 60 days behind before a creditor can list a default. This can remain on a credit file for five to seven years, so it’s critical to stay on top of all bills.

It’s important to only use Veda Advantage or Dun and Bradstreet when seeking a credit report and steer clear of fake, scam sites that purport to offer the information.