Our credit report says a lot about our financial dealings and we want a fair and accurate accounting of how we maintain it. The financial reporting standards of the three major bureaus are governed by laws that protect consumer rights. It is these very laws that can help you maintain an excellent rating.
Our ability to get a home or auto is all dependent on our scores with the bureaus and how our payment history is reflected in our files. It is important to maintain a good record so that you can get the finer things in life and not have to worry about financing. Our lives are summed up in that single three digit number and you want the highest rating possible.
To establish an excellent history, you must first obtain funding from a lender such as a bank loan or charge card. This is the initial stage of the game. Once you have established a financial profile, you then need to make sure that you make your payments on time, and try to pay off the balances on your credit cards each month. This will ensure that your financial behavior remains above average.
Try not to be tempted to use your accounts to make frivolous purchases and always assess if the item is a need or a want. Breaking it down this way you will not overextend yourself or your accounts and keep them from going over the limit, making it more difficult to pay off. Remember, that lenders look at your financial behavior and you want to be certain that they see a responsible person.
The three reporting bureaus or agencies have developed a formula that breaks down your profile into a three digit number on a scale from 300 being the worst rating to 800 being the very best rating. Try to stay on the higher end of the scale and you will be guaranteed to get the best loans and interest rates.
Checking your file will not harm your score and it will be one way to stay informed of any activity that may seem suspicious. Anything contained in your file that is inaccurate can be disputed with the bureaus and if the item cannot be proven that it belongs to you it gets deleted from your record. This can only be good for your overall score, so pay attention to any obvious erroneous information.
Whether you are just starting out or have been established for some time you will want to make sure that you do not have too many accounts in your name as this will have a detrimental effect on your score. Use cash in place of charge cards for those small purchases.
Overall if you use the above suggestions you can have an excellent credit report that you can be proud of. Lenders will enjoy working with you and helping you get the things that you want and need.
Our ability to get a home or auto is all dependent on our scores with the bureaus and how our payment history is reflected in our files. It is important to maintain a good record so that you can get the finer things in life and not have to worry about financing. Our lives are summed up in that single three digit number and you want the highest rating possible.
To establish an excellent history, you must first obtain funding from a lender such as a bank loan or charge card. This is the initial stage of the game. Once you have established a financial profile, you then need to make sure that you make your payments on time, and try to pay off the balances on your credit cards each month. This will ensure that your financial behavior remains above average.
Try not to be tempted to use your accounts to make frivolous purchases and always assess if the item is a need or a want. Breaking it down this way you will not overextend yourself or your accounts and keep them from going over the limit, making it more difficult to pay off. Remember, that lenders look at your financial behavior and you want to be certain that they see a responsible person.
The three reporting bureaus or agencies have developed a formula that breaks down your profile into a three digit number on a scale from 300 being the worst rating to 800 being the very best rating. Try to stay on the higher end of the scale and you will be guaranteed to get the best loans and interest rates.
Checking your file will not harm your score and it will be one way to stay informed of any activity that may seem suspicious. Anything contained in your file that is inaccurate can be disputed with the bureaus and if the item cannot be proven that it belongs to you it gets deleted from your record. This can only be good for your overall score, so pay attention to any obvious erroneous information.
Whether you are just starting out or have been established for some time you will want to make sure that you do not have too many accounts in your name as this will have a detrimental effect on your score. Use cash in place of charge cards for those small purchases.
Overall if you use the above suggestions you can have an excellent credit report that you can be proud of. Lenders will enjoy working with you and helping you get the things that you want and need.
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