Financially secure people tend to share a common trait. Most, if not all, know how to get ahold of their credit report, and what to do with it. Negative information in your history can have far reaching effects. It's important to know the ins and outs of your report and how to protect your score.
The three major bureaus provide one free report each year per person. Third party sites that promise easier access to the same information are usually scams set up to attach a monthly "monitoring" fee to an account.
It's not always possible to make payments exactly on time, but late payments may show up on your history. Pay these off as close to the original due date as possible. If your score is low, review your payment schedules for outstanding debts. More than one third of a score is related to debts that are more than thirty days past due. So, be sure to be on top of any accounts that are currently in good standing.
Even if you haven't used an account for years, as long as it is in good standing it should not be closed. Even accounts that may be dormant for 20 years will still be helpful in providing proof of financial responsibility. There is a desirable credit to debt ratio that helps improve your score, without the available debt that ratio won't help you.
Too many marks on your score is a red flag to anyone who looks at it. These marks can come from bad decision making, or slightly more surprising places. For example, it may surprise you to hear that applying for a loan or new card can put a mark on your report for at least a year. Too many in too short a time tells people you're not financially responsible. That may not be true at all, but you must do what you can to give the right impression.
Families can work together to create financial stability and learn to contribute to a positive report. Perhaps a secured card would help a teenager learn proper use, and also the work that can go into paying off debt, without risking financial damage. When they become an adult, they will need this knowledge as well as some kind of history to present if they need a new car or apartment, so starting early is key.
Major life changes usually involve investigation into your credit report. Usually it is a third party doing the checking, such as a potential new employer or business partner. It is never wise to misrepresent yourself or the items that will be found in your history. Being up front and learning to tackle old problems head on will be a much safer route than attempting to cover one's tracks.
The three major bureaus provide one free report each year per person. Third party sites that promise easier access to the same information are usually scams set up to attach a monthly "monitoring" fee to an account.
It's not always possible to make payments exactly on time, but late payments may show up on your history. Pay these off as close to the original due date as possible. If your score is low, review your payment schedules for outstanding debts. More than one third of a score is related to debts that are more than thirty days past due. So, be sure to be on top of any accounts that are currently in good standing.
Even if you haven't used an account for years, as long as it is in good standing it should not be closed. Even accounts that may be dormant for 20 years will still be helpful in providing proof of financial responsibility. There is a desirable credit to debt ratio that helps improve your score, without the available debt that ratio won't help you.
Too many marks on your score is a red flag to anyone who looks at it. These marks can come from bad decision making, or slightly more surprising places. For example, it may surprise you to hear that applying for a loan or new card can put a mark on your report for at least a year. Too many in too short a time tells people you're not financially responsible. That may not be true at all, but you must do what you can to give the right impression.
Families can work together to create financial stability and learn to contribute to a positive report. Perhaps a secured card would help a teenager learn proper use, and also the work that can go into paying off debt, without risking financial damage. When they become an adult, they will need this knowledge as well as some kind of history to present if they need a new car or apartment, so starting early is key.
Major life changes usually involve investigation into your credit report. Usually it is a third party doing the checking, such as a potential new employer or business partner. It is never wise to misrepresent yourself or the items that will be found in your history. Being up front and learning to tackle old problems head on will be a much safer route than attempting to cover one's tracks.
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