What's in your credit report

Just about your entire financial history on what loans, credit cards and store charges that you have made over the last number of years, normally 7 years from purchase or loan date. So you see you always have some type of activity in your credit file.

Your fico score is the most important 3 numbers you want to see. This will affect your interest rate and you ability to to even get a loan or credit card.

Employers and real estate agents that control rental homes are even asking for these reports.

There are a couple of ways you can keep track of your credit and know what is happening.

1. You need a credit reporting service that monitors you fico score and where you can have access to your credit report and history. The two better companies for this is Equifax or Experian.
2. After if you need it, get help fixing your credit history by using a professional credit repair service. Lexington law firm is the only legal company that has a very high record of success.

Check your credit report for the following problems

Clerical Inaccuracies

Sometimes credit reports contain mistakes that are caused by a computer glitch or a clerical error. These may include payments not credited, late payments, or data mixed in from a credit file of someone that has the same first and last name as you.

Ordering your credit report will quickly show you what the lender is going to look at. After this it is up to you to dispute any information that you consider inaccurate.

One month and 3 month late payment information

Even if your report contains a couple of 30-day late payment entries that are accurate, many lenders will overlook this if you explain the situation and your credit is otherwise good.

Avoid any payments being 60 days late however, as this is a red flag for mortgage and loan lenders. This is what will raise your interest rates if they approve your loan.

The primary period lenders are interested in on a credit report is the last two years, so try to maintain on time payments, and verify that the payments are being credited properly by checking your credit report regularly.

This is also a long term financial plan as a debt reduction solution for the future. Because debt free living doesn't happen over night you need to start some where and make it a habit.

Avoid unnecessary or too many credit application inquiries

Each time you apply for a loan or credit, the lender will look at your credit report, and another inquiry notation will be added to your file, these inquiries can stay on your credit report for up to two years.

Inquiries you make yourself, inquiries made during screening for a pre-approved offer of credit, or that is part of a background check for employment purposes are not reported to potential credit grantors.

It is best to avoid over-applying for credit and running up excessive inquiries, for the simple reason that creditors may think you’re trying to get credit due to financial difficulty, or taking on more debt than you can repay.

They do realize that some inquiries are a result of shopping around for the best rates on a loan, and so they will often overlook a block of inquiries within a very recent period. It may help if you explain the inquiries in the application process.

If you have a credit problem and are not getting any help in correcting it you will need a service to help you. I know more than a few people that have had serious credit problems that were caused by mistakes that they never made. The only course of action you can take is to sign with a credit repair agency and have them look into the matter.

Understanding how your credit report affects your financial future is the key to smart credit and money management. Incorporating a review of your credit file into your financial planning is also one of the best ways to make sure you meet your budgeting goals.

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