It is safe to say that bad credit generally does not happen intentionally. No one sets out to try to earn lower credit scores or damaged credit reports. Nonetheless, the unfortunate reality is that many American consumers must deal with the consequences of their bad credit on a daily basis.
Of course, in some instances bad credit simply comes about as a result of bad luck. Job loss, illness, divorce, and other unforeseen disasters can quickly take a major toll on your credit reports once the money in your savings account runs out and the unpaid bills continue to pile up afterwards. The honest truth, however, is that for the majority of consumers the true cause of their bad credit is not bad luck but rather bad choices.
“But John,” I can hear you shouting at your computer screen, “Yes, I have bad credit but I am really not a bad person.” I understand and you can rest assured that I can fully appreciate the sentiment behind your statement. Some of the kindest people you will ever meet still earn bad credit due to bad habits and, unfortunately, even if you are the nicest person in the world bad credit can still make your life much more difficult than it needs to be. No, your bad credit does not automatically signify that you are a bad person; however, bad credit does unequivocally tell future lenders that it would be a bad risk for them to lend money to you (at least not without charging you a lot more for the privilege).
It is quite possible that you may be earning your bad credit due to bad habits. After all, the way you view certain actions and the way lenders and credit scoring models view certain actions can be very different. Take a look at the following bad habits that should begin breaking now so that you can finally start earning the good credit you need to match your great personality.