How does credit affect my life?

Credit is a very necessary commodity in today’s world. It is extremely difficult, if not impossible, to operate without credit. Of course, we all know that we need credit in order to make major purchases such as a home or automobile. But, are you aware that you also need credit to purchase insurance, establish most cell phone accounts and connect utility services in your residence? Additionally, more and more employers check potential employees’ credit and use it as a determinant in deciding who will or will not be hired for a job. Imagine you are a young high school graduate who has just gone off to college. Once you reach campus, you are bombarded with credit card offers. At this point in your life, credit is easy to get and hard to resist.

Being a starving student, it is quite easy to “charge it” when the pizza arrives. Or, perhaps you had to purchase books or other class supplies because you were short on funds. Now, fast forward to college graduation. After years of studying and hard work, your sacrifice has paid off and your dream job is in the bag - almost.

You’ve aced two interviews and the company has offered you the job. The only thing remaining is for human resources to verify your references (no problem there) and check -- your credit. Oh, no! My credit! You’re not surprised when the phone call comes. Although they really liked you, they’ve decided to hire someone else with a more stable background. Or, perhaps you’re older and have attained the American Dream - job, family, nice home n the suburbs. Then, a medical tragedy strikes your family and you’re left with thousands of dollars in medical bills that your insurance company refuses to cover. Before you know it, you’re behind on all of your bills and your credit is ruined. No matter what the situation, it is highly likely that you will be forced to rely on credit, many times over, during your lifetime.

Your credit worthiness, or lack thereof, will either work for you or against you. Renewal realizes that just because an individual has bad credit does not mean that he or she is a bad person. However, your credit report represents your financial reputation. Often, it is the only way lenders can judge your credit-worthiness. Bad credit happens to good people everyday. It is a situation which, if left untreated, can spiral out of control. You must learn to make your credit work for you.