If you want to keep your good credit rating then you might want to be careful about the things that you do. Or you may not really know much about credit ratings but want to know more. It is important to make sure that you are clear on what credit ratings are and why they are important and then you will be bale to make decisions such as the above, much more easily.
What is a Credit Rating?
A credit rating is something that some people use to find out information about you. Each of us has a credit report and this will have information about us with particular focus on our finances. This will include things like loans and regular payments, any missed payments and some other information. It also contains details of anyone tied to you financially which means anyone you have joint accounts with. There is no official score as such though or rating, it is just a list type record and it is up to those accessing it to decide on what they think about it and rate it in the way that they wish. This means that it can be tricky to know exactly what will be the best with regards to behaviour as we do not know exactly how we are being judged, but a common sense approach, putting yourself in the position of the person doing the judging could help you to think about what might look good and what might look not so good with regards to your behaviour with money.
Why is it Important?
It is important because there are various decisions that will be made based on your credit report. The first will be any borrowing that you want to do. Lenders want to see that you are reliable and capable of making regular payments. They will look at loans that you have had in the past and see whether you have paid those on time. They will also look at whether you make regular payments, perhaps for things like utility bills and if you can do that, then they will be more likely to feel happy that you will be capable of repaying the loan that you have applied for. Landlords may also look at the record as they will want to see whether you are capable of making regular payments to see if you will pay the rent, but they will also be interested in making sure you do not have too many loans, as they will want to make sure you have enough money left to pay them. Some employers will even look at your credit report. They are more likely to just use it for an address and ID check, but if it does not look good, they will not be impressed and for certain jobs it will be important. So you can see that it can have an impact on some big areas in your life and so it is important.
Should I Marry Someone with a Bad Credit Rating?
Marrying someone is often an emotional decision rather than a practical one. However, if it means that you will have financial difficulties it could be tricky. However, if you do not have joint accounts, then it will less likely to have an influence on you and if you are living with them anyway then it is unlikely to make a big difference. Whether you have a joint account with a partner or a spouse you will be treated the same it is only if you are living with someone that you are not in a relationship with – when you have flat mates, that their credit status will not reflect on you.