There are certain circumstances in life that can incur lots of financial difficulty, including those who have adverse credit.  But you are not alone. An adverse credit rating does not categorize you as a person who is financially irresponsible, or in any way, is equivalent to a person who does not pay their bills on time or has been financially irresponsible in the past.

The definition of financial responsibility simply means that a person has the financial ability to pay their bill in full and on time.  It has nothing to do with whatever your financial situation is, so if you bounced some check early in your life, that is not a bad thing if you intend to pay it all back.

It’s a simple fact that credit is a part of life. It is required by law in order to conduct the business of buying an automobile, a house, and many other purchases. Financial responsibility starts with establishing one’s credit. The best way to establish it is to obtain a credit card. And if you do not have one, get one today. There is a charge, you will have to pay interest, but at least you will have a credit card.

Most people get their first credit card at the age of 18 or older, given that there are no income qualifications for them. When they are 18, they have had many opportunities to demonstrated financial responsibility andUnfortunately, they have been prey to very aggressive credit companies that have exercised an almost predatory practice of issuing credit (debit cards) even to people with bad credit.  When people with bad credit apply for credit, the credit card company knows that they cannot have those bad credit ratings climbs, transferring them to bump up the limit on the card.

It is an established fact that those individuals who have a bad credit rating had several chances to learn financial responsibility, but they just didn’t get around to it. And when they do, the learning curve costs them thousands of dollars and years of a more or less thankless lifestyle, until the roof closes and they hit rock bottom, making a bad first impression for the entire state and the entire country.

Personal injury occurs often. An adverse credit history as a result of one’s ability to pay a bill in full is a factor. Personal injury while driving under the influence of alcohol, drugs or mental stress has been known to happen and still has, yet another victim of credit abuse.

In some states, a person can notify the credit reporting agencies if they have been the victim of your negligence. If so, then it is your responsibility to correct the record, in accordance with the laws of your own state.

In many instances, those who have filed a credit report can show up on one’s report for years and years. Multiple reports of financial hardship due to bad credit can also be reported and can easily be “flagged” by the reporting agency to remove the record from your credit reports in case it could be considered as a fraudulent statement. Many others will do so with no intention of removing the record until they cannot anymore.

What can you do if you become the victim of “credit negligence”?

In relation to what I have said previously, it is easier to clean up one’s credit report than you might think. It is imperative to review the report very well. Have a close look at the outstanding balances and your credit limits. What can you do to remove some of that excess credit you may have issued?

The very first thing you should do is to establish good, solid credit once again. In other words, when your company gives you an account, sign it in your name and not that of a business entity, which is a good indicator to the credit reporting agencies that this account is not yours and not your name going on any other account with your details.

In my opinion, that is the very first step to establishing your credit once again. If you have a adverse credit history or have filed for bankruptcy, or even if you just have bad credit because you didn’t pay your bills, don’t fret.  It’s not difficult to establish good credit again. It just involves a little more effort, and understanding the importance of rebuilding your credit. One of the most important things you can do is to start saving now. Get yourself a savings account and start saving. Not only will it discourage you from spending money, but it will also show the lenders you are serious about rebuilding your credit.