• Are you being turned down for home loans, refinancing, automobiles, department store cards, or even gas cards?
• Are you paying a higher interest rate than you should, or has your credit limit been lowered?
• Are you tired and embarrassed by the constant calls from creditors and collection agencies harassing you?
• Have you faced repossession or foreclosure?

These questions can be hard to answer, maybe even frustrating just to think about. A lot of Americans suffer from negative ratings in their credit file, including delinquent payments, judgments, collections, foreclosures and bankruptcies. You’re not alone! Not only do these items prevent consumers from obtaining new credit when they need it most, it may also cause additional penalties such as: increased interest rates on credit cards, higher late fees and over-limit fees, shorter grace periods and lowered credit limits.

Unfortunately, credit issues (delinquent payment, judgments, collections, foreclosures and bankruptcies, etc.) can prevent you from obtaining new credit when you need it. Sometimes, the creditors will even charge you a higher interest rate or fees. NOT COOL!

As an entrepreneur, I have had my own ups and downs. Yes, I have filed for bankruptcy. Not a good feeling. Fortunately for me, I don’t take no for an answer. I learned how to improve my credit rating and believe it or not, I was able to build a brand new home in two years! Yes, after two years, my wife and I went to MI Homes and built our first home.

So, as you see, all is not lost. There is hope. I’ll share with you what I have learned about credit as we go along. I had to learn the hard way, but hopefully you will be able to avoid the mistakes I’ve made.

Know what is on your credit report!

Did you know that your credit score could stop you from getting a job? Sounds crazy, I know, but it’s true. I have my theory on how and why this has “suddenly” become an issue, but now is not the time to share it. (stayed tuned)

Most people with a low credit score are not necessarily irresponsible, nor are they unwilling to pay their obligations. In fact, if you are like most people, you probably maintained a good credit profile until an unforeseen circumstance, like a layoff, medical problem or divorce, prevented you from making a few payments in a timely manner.

The truth is that most people struggle long and hard to meet their obligations, but the money coming in just doesn’t meet the bills going out. If the circumstances become serious enough, many people have been forced into foreclosure or to file for bankruptcy protection. Now, you have a low credit score!

Your score is used to determine your interest rate on credit cards and loans, the amount of your down payment, the variety of mortgage loans available to you, and even the premium on your auto or homeowner’s insurance.

Not too many Americans have viewed their credit report within the past year. They have no idea what is on the report or what their score is.  A recent survey revealed that nearly 80% of all consumer credit reports contain serious errors or mistakes of some kind. Your financial health revolves around your credit score, so it is important that the information your credit report contains is as accurate and up-to-date as possible.

There are several ways to keep up with your score. I don’t personally endorse any particular company for you to use, but it is very important for you to know what is on your report. Here are a few companies that help you learn what is on your credit report: Credit Karma, Free Credit Score, Credit Report, and Credit Check Total.