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The importance of the credit report and how it can affect people

By Janet Lacey
Published: Sunday, December 4th, 2011

Money is of course a very important issue for each and every person. Money is the primary reason that people go to school to attain a quality education so that they can then parlay that good education in to a career that will set them up financially for life. People spend an incredible amount of time trying to find that ideal job and the money to be made from it is obviously a huge consideration for people. A lot of money however is not something that can be easily made or run in to unless one is fortunate enough to find success in some sort of lottery and it is those days when money is not available, a purchase is necessary and there is money to be made in the future that a credit card can be a person’s best friend.

Credit cards are incredibly essential to people because it allows them to have the purchasing power that money can afford without the need for actually having it on hand. Money is after all a commodity that can prove to be elusive to people but the need for it however never diminishes. Credit cards then allow people the opportunity to still be able to make those essential purchases to support themselves especially in those particularly trying financial times. These credit cards though demand that the people that use them be very responsible.

Credit cards can be a truly valuable ally to people but the misuse and abuse of them however can spell disaster for people. Credit cards are almost a double edged sword in that regard. For all the good things that credit cards can do for people, it just as easily can put them in to a real mess that can handicap them for a considerable amount of time. The key then for people with the credit cards and that use them regularly is to make sure that they understand that the though the credit card may give them a good ability for purchasing it is still something that will require payment and as such proper discretion is very important.

People have to fully understand that the credit cards that they use come attached with a set of rules. It is for instance not a license to spend and is instead something that must be handled with the utmost care. People have to realize that with each and every transaction that is made with the credit card is that there is always some form of repercussion.

The credit card transactions are recorded and that the timeliness of how people pay the debts accrued up on the credit cards are what will eventually determine the favorability of their credit report. The reason that this score is so valuable is because this can have a major impact on whether or not lenders will be inclined to hand out a loan and if they do agree to one at which rate it will be set at. It is then very important that people exercise great responsibility with their plastic purchasing partner.

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