0009 - Debt Related Queston: Bankruptcy Question # 0009

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QUESTION #0009:

I was told that I have poor credit rating but I donít know why that would be?



ANSWER:

As easy as it is to establish a good credit record, it is even easier to wreck one. Some of the most common ways people damage their credit includes applying everywhere for credit, and then maxing out each type of debt. Even if you carry many cards with a zero balance, a new lender may be put off by the fact that you have the capacity to take on a large debt load. Other bad ideas include co-signing loans for others, which leaves you on the hook if they default, and forgetting to cancel ex-spouses supplementary cards and notifying the issuers when you leave a relationship. As always, if you run into difficulties, talk to your creditors and let them know that you are going to pay. Hiding from your creditors will also damage your rating.