Your Credit Score Affects Your Reputation

When you think of your reputation you think of things like honesty, sense of humor, generosity, punctuality, your love life, and the way you treat other people.

They're all personal habits, and so is the way you handle money.

The difference is, while all the rest of those attributes are tossed around between your friends and acquaintances, your money management reputation is also made public record for any potential creditor, landlord, employer, or insurer to access.

Unlike some other things that might have gone on in your life, you can't move to a new community and escape your financial reputation. Your credit report and your credit scores tell all - at least for 7 years.

The worst of it is - that financial reputation affects things that you might think have nothing to do with your bill-paying or borrowing habits. Things like qualifying for a new job.

That's why it's worth your effort to protect it, and to keep it accurate.

If your credit right now isn't so hot, it's time to take steps to rebuild it. I know, 7 years seems like a long time to completely erase blots on your reputation. But if you wait, that 7 years will just keep moving further into the future.

So, get started. Here's what to do first:

1. Start paying down your bills! Even if it means finding a small side job to boost your income, or cutting back on something you enjoy, just do it.

2. Pay off any collections on your record. Many of these collection agencies will negotiate with you, so see how low you can get the balances, and then take care of them. Be sure you get the payoff agreement in writing, so if they don't remove them from your record you can contact the credit bureaus and take care of it yourself.

3. Don't go shopping and let some sales person check your credit. This is the time for "window-shopping" only. Whatever it is you're longing for - set it as a goal for when you've paid the bills and built some cash reserve.

4. Get some good credit going. Gather up what cash you can and get a secured credit card. Use it sparingly and pay the balance each month - so the notation on your credit report will say "Paid as Agreed."

It takes time to rebuild your credit if it was tarnished in the past. Treat it like you would others.