Your Credit Report and How Lenders Interpret It
Everyone knows that before you can apply for a loan or a credit card, creditors go through your credit report to see if you are creditworthy. How exactly do they examine your credit report?
It is very important to understand what exactly goes into one’s report.
Sometimes information stated that seem harmless to you can affect a creditor’s opinion. Your report does not say if you are a bad or good credit risk out right, they have their own criteria for evaluation, which is why it is important to know what goes into the report.
So what goes into your credit report?
Your credit report contains your personal information, your name, your current and previous address, and your social security number. Creditors can also view your hard inquiries,or the record of who goes over your record.
Beware of accumulating hard inquiries. This may give the lender the impression that you are in need of a lot of credit. Fight the urge to apply for a credit card to get free stuff. This adds to the list of hard inquiries in your record.
Your credit report also contains inactive credit accounts. Keeping inactive accounts makes you appear as a risk to lenders with all your readily available credit.
If you want to close your account, do not just cut up your card, you have to write or call the credit company to tell them you want the account closed.
if you are a victim of false or invalid information on your credit report, immediately file a dispute. Write a letter to the credit bureaus as well as the lender telling them of the incorrect facts on your report.
In filing a dispute, you have to be patient yet aggressive in order to attain the good record for your report.
Your payment history, including maxed-out accounts, appears on your credit report. Reduce debts by making at least a minimum payment.
Maxed-out accounts are probably a signal that you might be spending more than you should.
To help clean up your report, pay down some of your maxed-out accounts with balance transfers you lower your accounts.
Repairing your credit may feel like an insurmountable task but it isn’t. You can find more information at www.squidoo.com/credit-repair-repair. Or get a Free 5-part video series on credit repair at www.Credit-Repair-Repair.info [http://www.Credit-Repair-Repair.info]
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