Good Credit, No Credit?

In these tough times, I hear more and more of homeowners loosing their credit. I am astounded when I hear them say that they just don't care about loosing their credit and the explanation is that everyone is going through it, so what......

People don't seem to understand the importance of having good credit. I know many are flustered with their situation but they are not thinking of future consequences. Many have decided to foreclose on their homes rather than do a short sale or modification and many are filing bankruptcies. Even if this situation is common and happening in many households, the credit rating system will not change. Bad debt will show on your credit report for seven years, foreclosures might show for a longer period of time. Bad debt will not be erased until then. Landlords do check credit reports and fico scores, in order to rent their properties. I know many people who have lost their credit, in fact, I have gone out with them and it's amazing to hear that they don't have any cash nor credit cards. I had someone say "I don't even have access to a dollar".

I, myself, have struggled but I have always tried to keep my credit, when a crisis arises, Ihave my credit to back me up. I can't imagine being without it. Now, my husband wants to open a small business, we are applying for an express loan through the Small Business Administration and guess what they check, they base the loan on your fico score. No score, no loan!

It's so important for people to be educated on the importance of keeping their credit in good standing. I wish more would study the consequences before rushing and loosing it. Please be wise, there are many websites that can assist with credit problems. I have learned a lot from these websites and I was able to clear my credit and be proud of it!