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Bad financial habits can tarnish your credit file
There are several reasons why you might resort to credit: to pay for unforeseen expenses, purchase goods immediately, pay for your studies, invest, etc. But did you know that bad financial habits could ruin your credit file and damage your future financial reputation?
What exactly is a credit file?
Your credit file is created when you first borrow money. Then, each time you take out a loan or get a credit card, the financial institutions, finance companies and retailers concerned communicate specific factual information regarding transactions they have with you to credit reporting agencies.
Among other things, your credit file shows whether or not you have paid your debts and other bills on time, and how much you have already borrowed. This information helps credit grantors determine your solvency, i.e. your ability to pay back your debts.
Find out more
For more information about credit rating, see Your credit rating.For all of the articles, visit the Did you know page.
