Having a good credit rating is one of the most important factors to your financial well being. A person or couple with a good credit rating can be approved for a mortgage, credit card, car loan, or personal loan with a lot less difficulty than a person with bad or poor credit. Your credit rating is extremely important and if you would like to increase the opportunities available to you due to a good credit rating, here are some tips.

Obviously the most important tip to avoiding bad credit is to be responsible and pay your bills in a timely manner. However, since life throws a few curve balls, discrepancies can arise, identify theft and fraud can happen and an unexpected lay off or illness can throw a persons credit rating in a downward spiral.

If you are having difficulties paying your debts and would like to avoid bad credit, the best advice is to contact your lender immediately and communicate to them the problems you are having. Most financial difficulties are temporary and many creditors will likely create a reduced payment plan or allow you to stop payments for a few months. However, if you don't notify your creditors and your payments stop suddenly, they are more apt to report you to the credit bureaus.

Another important tip is to request your credit report each year or every six months. There are three main credit bureaus that report your credit scores to banks and lenders. They are Trans Union, Experian, and Equifax. Depending on your residence state, you may receive a free credit report each year. Check your credit report for any discrepancies and for any new loans or credit cards opened up in the last few months. If you are a victim of identity theft or fraud, you will usually notice immediately and can contact the bureaus to correct the situation. If you are trying to avoid bad credit, take a look at the above suggestions.