Using credit means you buy an article now and pay for it later. Statistical data has proved that approximately 14 credit cards are used by an average American household. Excessive use of credit cards has eventually led to the credit crunch under which the world economies are reeling.

More than just the credit score: It is a well known fact that earlier having a good credit score could entitle you to a loan. With subprime mortgage crisis, lending activities and eligibility criteria for availing credit has become more and more stringent. Not only banks but credit card issuers have also become very strict. Now in addition to your credit score, there are other parameters which are taken into consideration while deciding your eligibility of getting a loan.

For instance, USAA, a lender has declared that having a FICO score above 700 will not be enough to make you eligible for a loan. Cutoffs related to car loans have been raised. Approvals related to credit card and personal loans have also been taken into consideration.

Credit is a favor: Owing to the credit crisis, no one knows what the next 12 or 24 months have in store for the consumers in United States and other nations. However, it is of utmost importance that you sit up and take the reigns in your hands. One important factor is that credit should not be considered as your right; it is just an incentive or a favor you are enjoying.

It should also be remembered that credit score indicates your creditworthiness and can affect your borrowing capacity for several years. In the context of the subprime mortgage crisis, it can be said that only lenders cannot be blamed for the crisis. In fact, the debtors who availed the manipulated loans were also a party to the crisis.

Don’t let your credit report get tampered: The need of the hour is to cut back on your unnecessary expenses. Saving for the rainy day is what is needed. Having a good credit report gives a very positive indication. You should check your credit report from time to time to avoid any manipulation.

There are a couple of signs which indicate that your credit report is in jeopardy. Check them out.

• If any one of the credit reports obtained from the credit bureau show very haywire credit scores, it may be a case of identity theft.
• Check out for records which do not belong to you.
• Contact details of the credit card holder do not match yours. Someone else might be using your credit card details.
• If you have never exceeded your credit limit and for some reason or the other if you find that your credit card has maxed out on its credit limit, it is cause of concern and may land you in serious trouble.

If any of the above signs apply to you, you should not waste time in getting your records straight.

Useful Sites:

Free credit report simply give you a list of your payment history, your accounts, balances and payment behavior.
Sam’s Club Discover Card – For credit card related information visit this site.
Best credit report – Honest and unbiased information from the credit industry insider.