I will also add that credit defaults and credit score are reported in differently in different countries. My advice is to know how it is done in your country. It is important to know where you stand. One of the most important pieces of advice given by bankers and financial experts (at least up here in Canada) is to really watch applying for loans, credit cards, buying furniture on lay-away and other such forms of applying for credit. It all shows up on the credit report - regardless if you recieved the credit or was denied. The majority of banks and credit agencies will not approve a loan (or credit) if they see that in a short period of time (ex: one month) you made application to (say) a dozen creditors. They call it "fishing" and will not deal with someone who is constantly applying for credit. Also, think before using companies like TransCanada, Wells Fargo - the companies that provide short term loans with extreme high interest. It will show negative on your credit report (in Canada) and will have a negative effect when you apply for a loan or mortgage from a bank. Banks highly disapprove of these companies and this will stay on your report for many years. For myself and my brother, these companies showed up years after the fact and were factors that the banks used to deny loans. Despite the fact that the loans were paid off with 30% interest, no bank would touch either of us. When I spoke with a banker, was informed it is simply that they are looked on as "easy" loans, which destroy credit rather than building credit up.
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