The Society is becoming more and more dependent on using credit to make purchases and decisions. These days, good credit is used for more than just getting a credit card or a loan. More and more businesses are making the case that you must have good credit score before they extend their products or services to you.

DO COLLECTION AGENCIES TAKE ITEMS OFF YOUR CREDIT?

1. Many creditors send your account to a debt collector if you’ve left it unpaid for several months. Once the debt collector has been assigned the account, part of their practice is to list the account on your credit report.

2. Having a debt collection on yourcredit report hurts your credit score. The entry will remain on your credit report for seven years for future creditors and lenders to see and scrutinize. The best option for dealing with collection accounts is to have them removed from your report.

3. How to get items off your credit. Collection Agencies will typically report the debts to the credit bureaus as paid. You must speak with the reporting agency about how to get the item removed. Some agencies will remove it while some will report it as paid.

WHY DO YOU NEED CREDIT?

1. Credit has a lot of benefits. It’s a lot more convenient than cash, and most people can’t afford to pay the full price for major purchases like a car or a home upfront. And credit’s importance isn’t limited to purchases. Potential employers and landlords may consider your credit as part of the selection process.

2. Credit grantors review credit applications and credit reports to determine financial risk: If they lend you money, extend you credit or give you goods and services, will you pay them back? They may consider your income, how long you’ve lived at your present address, how long you’ve worked for the same employer, what kinds of assets you have and your bank account balances. But often, though, the primary resource guiding their decision is your credit history

WHAT CREDIT SCORE YOU NEED TO HAVE TO BUY A HOUSE

1. Most lenders will require a credit score of 640 or above before they will even think about giving you money to purchase a home.

2. No one wants to do business with someone who is financially challenged — particularly if you are asking to borrow money for 30 years in a house. Bad credit scores can scare off real estate agents if they know you may be unable to make the payments on the house.

3. After the housing market failed several years ago and many homes went into foreclosure, many banks are now extra cautious and stricter when it comes to approving someone for a mortgage.

4. To be approved for the purchase of a house, lenders have to feel confident you are going to be able to handle the mortgage payments.

DO COLLECTION AGENCIES TAKE STUFF OFF YOUR CREDIT?

4. Many creditors send your account to a debt collector if you’ve left it unpaid for several months. Once the debt collector has been assigned the account, part of their practice is to list the account on your credit report.

5. Having a debt collection on yourcredit report hurts your credit score. The entry will remain on your credit report for seven years for future creditors and lenders to see and scrutinize. The best option for dealing with collection accounts is to have them removed from your report.

6. How to get items off your credit. Collection Agencies will typically report the debts to the credit bureaus as paid. You must speak with the reporting agency about how to get the item removed. Some agencies will remove it while some will report it as paid.