It is common knowledge that bad credit can make it harder to get more credit. But did you know it can also effect your ability to find or keep a job? It is a fact that employers increasingly use credit reports when hiring, evaluating and promoting employees. It is a practice that is coming over from the States and many consumer rights agencies are very worried about it.

Your credit report contains information about where you live, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy. This information is then sold by consumer reporting companies to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. The law requires the information in such files to be kept accurate and up to date.

Obtaining a credit card can be a great financial tool. It is more convenient to use and carry than cash, and offers valuable consumer protections under federal law. However, it is also a big responsibility. If you are not careful, you may owe more than you can repay, thereby damaging your credit rating, and creating credit problems for yourself that can haunt you into the future.

Credit scoring models are complex and can be difficult to understand. If one factor changes, your score may change - but improvement generally depends on how that factor relates to other factors considered by the model. Only the creditor can explain what might improve your score under the particular model used to evaluate your credit application.

Especially if you are new to the credit game, and have not yet established your own personal credit, you may be unsure of what kind of deals you can get with your own credit, in terms of interest rates and stipulations. The idea of window shopping for loans and credit cards seems like a far fetched idea if you are a no status borrower, and you are resigned at this point to take whatever it is that comes your way in terms of a line of credit. This does not have to be the case, and in fact, shopping for credit, the same way that you would shop for new shoes or a great deal on a hotel is an integral part of establishing good credit in the long run.

If you've ever been offered a substantial line of credit with one company and been refused by another, it's all a result of each company's credit scoring policies. Your personal credit score may fall within the acceptable limits for one company and not for another.

Have you ever wondered how a creditor decides whether to grant you credit? For years, creditors have been using systems of credit scoring to determine if you'd be a good risk for credit cards and auto loans. More recently, credit scoring has been used to help creditors evaluate your ability to repay home mortgage loans. This is how credit scoring works in helping decide who gets approved for credit and who doesn't.