Okay, this was an interesting term. Basically, on the news they were talking about credit scores again and how most people arenâ€™t too knowledgeable about the topic. Now you know how in the news whenever they interview people there is a strip on the bottom of the screen to label the person below their name? Well in this particular case, the person they were labeling was called a â€œcredit victimâ€.
Essentially the person had a bad mark on his credit report as a result of a bill that wasnâ€™t paid on time. It was some kind of rent fee apparently where himself and another individual was suppose to split the bill except the other guy never paid his half. To make it worst, the bill was under his name only. As a result, he couldnâ€™t get a loan from a bank.
It is important to differentiate the difference between a credit report and a credit score too like with the post I made before. I just thought it was kind of over dramatizing to label people as â€œcredit victimsâ€. You then see them interviewing others who have no idea how they could check their credit score until it is too late. Almost felt like a propaganda segment to advertise credit report products/services.
Although, there was one interesting tip that most people donâ€™t think too much about and that is your total credit availability to usage ratio. For example, they made the point how letâ€™s say you have $5000 on your credit card that you maxed out in the month. Being the financially responsible person that you are, you pay it off in full. You would think that would be good for your credit score, but the fact that you used up all your available credit is considered a bad sign and so you should consider using less than your maximum credit limit.
Speaking for myself, I usually donâ€™t worry too much about that though. Funny thing is a couple of years ago I racked up my credit card to the limit for Christmas shopping which was in the thousands and since my limit wasnâ€™t high enough I had to just pay off the balance right away to free up the credit availability. Think the bank saw this too and they just simply increased my limit by a couple of thousand. 😛
Can you truly be a â€œcredit victimâ€ though? I personally never viewed credit as a necessity personally. It just makes life way more convenient with the way things are Iâ€™d say.