Your credit affects many areas of your life. For example, your credit worthiness will affect your ability to purchase goods and services on credit and to get a loan. If you have a good credit record, you are likely to receive lower interest rates than those who are considered credit risks, which means you will pay less interest.

Some employers even review a job applicant's credit report. Poor credit could mean that you are not offered a job. A potential landlord also may request credit bureau information for an applicant seeking an apartment. Landlords do not want tenants who are late paying rent. And, your car insurance rate may increase if you have negative information on your report.

As you can see, poor credit can be a huge obstacle to obtaining the good things you desire for yourself and your family. Similarly, a poor credit history tarnishes your ability to plan for the future.

It may take some time to repay debt and improve your credit record. You may even need some assistance from a nonprofit counseling service to help you start paying off debts. After you pay off your debts, you will be in a better position to start saving and begin to build your assets.

Plus, your credit rating will likely improve. Eventually, you may want to consult a CERTIFIED FINANCIAL PLANNER™ professional who can show you how to reach your financial goals.

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