Your Credit Rating – worth it’s weight in gold

Posted by Malcolm Campbell on 10 September 2015
Your Credit Rating – worth it’s weight in gold

Most people don’t set out to be in a position of owing others money they can’t repay. However, you can sometimes find yourself in a position of not being able to keep up with outgoing expenses and commitments. Nevertheless trying to preserve a good credit rating should always be a priority as a bad credit rating can haunt you for years to come, impacting many aspects of your life.

If circumstances find you owing another party money that you cannot pay within the regular terms of payment, the first thing you should do is take ownership of the situation.  Talk to the creditor and give a clear outline as to what you intend to do to sort your problem. Don’t ignore it as debts do not go away.  All major credit rating agencies will record court judgments entered against you even if your creditor does not report a payment default against you. Entries in the credit rating records will remain for a period of at least six (6) years. 

Your credit rating or credit history is checked every time you apply for any form of credit or loan. This can range from a typical loan application from a bank, applications for credit cards, interest free retail deals and even an application for a mobile telephone.  If you have been flagged with a payment default or a court judgment against you, it will be unlikely for any lender to approve a credit application. 

If you owe someone a debt you are struggling to pay or dispute, it is very important that you deal with the situation quickly. If you need to take legal action or seek legal assistance do so promptly. Early and sensible action will help resolve the situation and may mean the preservation of your credit rating and save further stress from the consequences of an unpaid debt.