Most of you reading this know that a good credit score can mean the difference between getting credit on good terms vs. terrible terms or even whether you're worthy of any kind of credit at all. There are also some of you readers that, like me in the past, approach the thought of credit with a "who gives a rip?" attitude. I will just buy what I can afford and pay for it in full. Made sense to me!

Most people have a long credit history before the age of 35. I did not. I was one of those people who, for a good part of my adult life, had not applied for any type of credit. If I did not have the money to buy something, then I just didn't buy it. I got by just fine and still probably would today, if I still didn't care about my credit rating. At 35 years old, I did not even have a FICO score. Reason being, there was insufficient information to factor and apply to the scoring model at that time in my life.

Several years ago, if you were to pay for all of your purchases in full with money that you saved, your credit report and credit score probably did not matter much to you. If you did not have the money saved up to buy something, you waited until you did. No big deal, right?

Things have and are changing. Your credit report can now affect your pocket book whether you use credit or not. There are now trends in full bloom by insurance companies to base your rates on your credit profile. Low or no score, you pay higher premiums. This fact alone can cost you thousands over your life time. Let's just say, I started to "give a rip".

Add to the mix; if you do make large purchases using financing, like a home, your credit score will be used to determine the interest rate on your mortgage. The lower the score, the higher the rate, which could mean a difference of tens of thousands in interest over the life of the loan. I think I would rather spend my potential tens of thousands of dollars than fatten up some banks balance sheet. I think I can put that in the "give a double rip" category.

In recent years, credit standards have been steadily loosened and interest rates have been held to considerable lows. In this environment, it has been easier for people with middle to low credit scores to get credit approval for anything from credit cards, gas cards, and even car and home loans. What we currently have are easy lending standards. Because of this, there are a great deal more risky loan portfolios out there. Banks have granted loans to people that, in reality, should have never taken on the additional debt. All the while, charging, in many instances, high sub prime interest rates (which I might add, should be considered a "rip-off"). If too many of these risky loans were to default, it could create a scenario where lending standards are tightened to levels that predate the current consumer credit consumption binge that is rampant in the United States (and elsewhere, for that matter). I personally think that we are not far from new tightening standards.

Because of the years that I have been involved with studying and assisting consumers as relating to debt and credit, when I made the decision to establish credit, I was able to do so with a well educated, patient, and thought-out approach. I had, within just over one year, gone from no FICO score to having all 3 of the major CRA's reporting a better-than-700 FICO score.

Why did I go from "who gives a rip" attitude about my credit score to concern for the fact that I did not have one? Because the commercial use of my personal credit profile is increasing. A trend that, over time, right or wrong, is going to affect yours and my wallet. The trend is for more and more doors to be closed to those with poor or no credit rating. To not take an active interest in your credit profile could mean not only the loss of money, but also, lost opportunity.

Maintaining and, even increasing, ones score can be relatively simple. Just follow a few simple guidelines.

My credit is already trashed. So screw you and the rip you rode in on. Negative trade lines on your credit report that are accurate, complete, and up-to-date can remain on your report for what amounts to a total 7 ½ years (10 years for bankruptcy). If you have experienced some tough financial times and have missed some payments or experienced charge off's, you can recover. In the case of credit reporting, time can be your friend. After a couple of years, a negative item on your report is considered to have less of an impact on your score; it sort of gets stale. Depending on your circumstances and your credit goals, there are also methods that you can use to increase your over all score, short of waiting 7 years, if you approach it methodically. Consumer Recovery Network can assist you in planning for your future credit decisions.

I'm already behind on payments… so what the rip to do? If you have missed payments, a creditor will report damaging information to the CRA's. If you are having financial difficulty, don't allow a creditor to distract you from meeting your families' important needs just because you may end up with a blemish on your credit file. You must take full financial stock, both present and future and prioritize your debt. If a debt collector is making these threats, the same principle applies.

Please contact CRN at 1-800-939-8357 to schedule a free consult so that you can learn more about your options.

Here's your credit tip…it's time to give a rip!