Your Credit Report And The Ways It Can Affect You

​Sometimes when we are young we are not always as responsible financially as we ought to be.  While this might not have many immediate ill effects, it could affect you in the future.  One example of this is when you want to buy a home for the first time and apply for a loan.  A lender will usually take a look at your credit report to see how financially responsible you are such as; do you have a history of paying bills on time? And, how much debt do you have?  To improve your chances of being approved for a loan, here are a few suggestions on how to maintain a good credit report:
 
If you have acquired numerous credit cards and have some you no longer use, call the companies to cancel them.  Even though you may not use them, too many credit cards give a lender the impression that you are not responsible financially because you give yourself too much available credit and could put yourself in danger economically.  Keep your longest held credit card accounts, though, as this shows a lender that you have a long credit history.
 
Its vital that you never miss a credit card payment.  This will be noted on your credit report and you will end up paying a fortune in late payment fees.  If you find remembering to make a payment before the due date, why not set up an automatic payment plan that covers at least the minimum due?  That way you will eliminate the problem of late payments.
 
Obtain a copy of your credit report so that you can look for ways to improve it.  You are entitled to one free copy every 12 months, so take advantage of what’s available to you.  Occasionally, a credit report will contain an error, having the report before a lender sees it will give you the opportunity to fix the issue before they see it. 
 
As we can see, a bad credit report could affect your chances of being approved for a loan so think about improving it with these suggestions.  

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