One of the most important pieces of information to your financial health is your credit report. It is important that you have an understanding of all that it contains and how it relates to future credit you may apply for.
Your Credit Report Says A Lot About You
A lender can tell what kind of borrower you are through your credit report. It tracks late payments, collection requests, and bankruptcies. Other things that these reports can track are accounts that were opened and closed, on time payments, and loads that are paid off. With this history of yours, your future can be affected.
Too Much Credit Can Hurt You
Believe it or not, regardless of having no late payments and carrying a low balance, it can hurt you to have too many credit card accounts on your credit report. Since you're able to run high credit card bills, it's possible for you to accrue a large debt which you'll have difficulty in paying because you have other bills to pay, and this is what worries the lenders. If you have credit cards that you don't really use, it's best to close the accounts. Instead of carrying three gas credit cards, trim down to one, or put your gas purchases on a general use credit card.
What You Don't Know Can Hurt You
Since there's a lot of information about you that's compiling, it's possible for credit card reports to contain mistakes. Your report may state that a certain account you've already closed is still open or the balance you've paid off is still listed. You need to contact the credit bureau to have any inaccuracy corrected.
Action Needs To Be Taken
Believe it or not, missing credit card payments can cost you more than late fees. If in your credit report it states that you have late payments, it can keep you from buying a car or getting a home loan and there's negative information on your report, it will take 7 years to erase it. It is important to make your payments and make them on time and to carefully consider every purchase you place on a credit card.
Your Credit Report Says A Lot About You
A lender can tell what kind of borrower you are through your credit report. It tracks late payments, collection requests, and bankruptcies. Other things that these reports can track are accounts that were opened and closed, on time payments, and loads that are paid off. With this history of yours, your future can be affected.
Too Much Credit Can Hurt You
Believe it or not, regardless of having no late payments and carrying a low balance, it can hurt you to have too many credit card accounts on your credit report. Since you're able to run high credit card bills, it's possible for you to accrue a large debt which you'll have difficulty in paying because you have other bills to pay, and this is what worries the lenders. If you have credit cards that you don't really use, it's best to close the accounts. Instead of carrying three gas credit cards, trim down to one, or put your gas purchases on a general use credit card.
What You Don't Know Can Hurt You
Since there's a lot of information about you that's compiling, it's possible for credit card reports to contain mistakes. Your report may state that a certain account you've already closed is still open or the balance you've paid off is still listed. You need to contact the credit bureau to have any inaccuracy corrected.
Action Needs To Be Taken
Believe it or not, missing credit card payments can cost you more than late fees. If in your credit report it states that you have late payments, it can keep you from buying a car or getting a home loan and there's negative information on your report, it will take 7 years to erase it. It is important to make your payments and make them on time and to carefully consider every purchase you place on a credit card.
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