A credit report pools your performance with all of your creditors into a single score. It is important because your report essentially tells a potential creditor how likely you are to pay them back for a loan.
A lot of people establish good credit by initially getting a credit card with a modest limit. Make a few purchases every month and be sure to pay them off before your due date. Before you know it, you might decide to get another card or apply for a car loan.
Pay all of your bills on time. Make sure that the balances on any of your credit cards stay low so that you can pay them off every billing cycle. Don’t try to obtain credit if you don’t need it. This could prove too irresistible and you may overextend yourself.
First things first, do all of the things you would do if you were maintaining a good score. At the same time, negotiate with those holding your outstanding accounts and arrange payment plans.
If you struggle with your credit score, you are not alone. While it is not ideal, it is also not the end of the world. You can often work with creditors to find workable solutions.