Why Consumers Should Learn About Credit in 2011

March 25, 2011 - PRLog -- Credit is important to consumers in 2011 for a number of reasons. The first and most important being your ability to qualify for loans and new credit in spite of the terrible economic situation. Many economic experts believe that our economy still has years until it will fully recover from the mortgage crisis. So, if an individual wants to qualify for loans or credit, they are going to need an amazing credit score, great employment history, and a fair amount of money in the bank. The qualifications have gotten much more strict, so if people want to get ahead in the next few years, understanding personal finance is a must.

One major thing people do not understand about their credit score is that it can be changed with a bit of work. Once you understand how your score is calculated, you can work toward specific goals that will increase the overall number. There are 5 distinct factors that go into creating your score. If you know what they are, you can alter financial habits that might reduce the number. Credit to Debt Ratio is an example of one major factor that influences your score. This ratio is the amount of credit you have available compared to how much you actually use. Credit bureaus like to see you use no more than 30% of what you have available to you.

http://greatcreditscore.org/scoring-factors/what-determin...

Other Instances Where Good Credit Might Be Important

If you are on the job hunt, you should know that some employers use credit data along with background checks to screen applicants. This may be more important for higher profile positions, or if you are in a situation where you might deal with money or important documents. Our job market is very poor at the moment so each applicant needs to make the best possible impression. Having a great credit score might mean the difference between being hired and having your application in the trash.

Another instance where credit scores might be a factor is if you are trying to rent an apartment or a home. A great credit score can be really important to a landlord, because it can show whether or not you have a history of consistent payment. Landlords look for tenants that conservative with their money and pay on time. A credit report that shows late payments or defaults, might be a signal that would make a landlord keep looking.

http://greatcreditscore.org/scoring-factors/credit-history/

Our new informational website at GreatCreditScore.org can give consumers insight into issues about credit and personal finance. As our economic road stays rocky, education becomes more important. Our website can help keep you informed about current financial issues and topics you need to watch out for.

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Great Credit Score helps to provide honest consumer information about credit and personal finance. Visit GreatCreditScore.org to learn how to increase your credit score.