Good credit is one of your most valuable assets. Without credit, most people today would never be able to own a home, a new car, or a business. But good credit is something that has to be earned. As many young men and women find out when they apply for a loan, creditors are cautious about lending to a first time borrower. Many times, someone, a parent usually, will have to co-sign before a creditor will make a loan. But once you start building a credit history, take care of it as much as you do that shiny new car. For in the long run, a good credit history is what enables you to buy a shiny new car.

However, bad things happen to good people. You might lose your job, or go through a divorce. You might get sick, or you might have an accident, and not have enough insurance. There are any number of unfortunate things that could cause you to get behind on your bills.
And once you get behind, it seems to snowball. Things can go from bad to worse fast. Depending on how severe your problems are, you might just have a few late payments or you could end up filing bankruptcy. Always try all your options before filing bankruptcy. Bankruptcy should be your last resort. A bankruptcy stays on your record for ten years. That's a long, long time. That's several vehicles or college. Either way, getting behind will wreak havoc on your credit score. But there can be a light at the end of the tunnel. You can work your way through the dark and hard times and build your credit score back up.

First of all, you should always try to keep up with your credit score. This valuable number tells anyone who checks your credit what kind of history you have as far as paying your bills on time. And you would be surprised at who all checks your credit score. Insurance companies check it. If you have a good rating, you generally get a better discount on your policy. If you are seeking a new job, the employer may check your score. It will show him how dependable you are. Generally, a good score is an indication of reliability and employers like reliability.

. The FICO score is based on five kinds of information. The largest percentage is your payment history. How often did you pay on time? This makes up 35% of the score. How much you owe makes up 30%. And this doesn't just count the balance showing on those credit cards. It also counts your credit limit. So if you have a credit card with an available credit limit of $5000.00, but only

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