It seems like practically every week there is a new story about another company that has been the victim of a hacking crime. If you have not already been the victim of a data breach or had your personal identifying information compromised in some other way, it is really only a matter of time. Identity thieves do not discriminate. Everyone is a potential target.
Whether you built up that pile of credit card debt due to a job loss, an illness, a family emergency, or just plain overspending, you will need to come up with a plan to deal with that debt before it becomes out of control. Credit card debt can be very expensive, but you might not realize that outstanding credit card debt could be damaging your credit scores as well. Even if you make your monthly payments on time, your balances are likely lowering your scores.
Imagine the following scenario…you budget and work hard to pay off your credit card debt because you understand that doing so will save you money and will likely help to improve your credit scores. After months of dedication you finally reach your goal of zero credit card debt. However, when you check your credit reports the next day you are surprised to learn that your credit card account still shows an outstanding balance. Is this a mistake? Why is your new zero balance not showing up on your credit reports?
If you are like most people, the truth is that you probably never planned for your debt to go unpaid and spin out of control. You signed a promissory note or otherwise agreed to a lender’s terms. Your intention was to make every payment on time and to satisfy your debt in full. And then…
There are a lot of factors you’ll worry about whenever you apply for a new job. Is your resume strong enough? Will the employer think you have the right experience? Are you the best applicant for the job? Does your competition have an edge over you? Did you nail the interview process? However, there is one more factor your new potential employer may consider during the hiring process, a factor which many people forget about – your credit reports.
The beginning of the year is a great time to check your credit reports and scores to see if they need a bit of a shape up. Your credit has a huge influence over your financial life. Credit not only impacts your ability to qualify for financing, but it can also affect your job prospects, your insurance premiums, and deposit requirements.
Good credit will genuinely make your life easier. As a result, working to keep your credit in the best shape possible is a wise goal which can pay off with some huge financial benefits.