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Credit
Report
What
Negative Remarks Should You Look Out For
by Suzy Vanstrusen
A credit report is being checked every time a person applies for a new loan,
credit card or even a job. This is the reason why negative remarks that can
badly hurt your credit score should be avoided. Below are the most damaging
things that must never be seen in your credit report. Knowing these specific
remarks will help you avoid them.
Overdue Bills. Take a look at the credit history section of your credit
report. Are there records of missed payments and past due bills? If yes, you can
expect that this will lower your credit score badly. Don't forget that your
payment habits make up the 35% of your total credit score. One delayed payment
can significantly cause your credit score to drop by a hundred points or more.
To avoid incurring late payments, what can you do? Usually, creditors give
at least 21 days before reporting your payment as late. It is your obligation to
be aware of your due dates and submit your payment on time. However, if an
emergency comes up and prevents from paying on time, contact your creditor right
away.
State you present situation and let them know that you are going to send
your payment within the next few days or weeks. Request your creditor not to
report it as late payment. Most of the time, if you show your willingness to
keep up with your debts, a creditor will give you the consideration.
Maximized Credit Lines. Do you have the habit of using up your credit limit
to the full? If yes, you are causing damage to your credit score. Financial
advisers recommend leaving at least 40%-50% of you credit limit free. Maximizing
or going beyond your credit line will not only lower your score, it can also
send a bad impression to other lenders to whom you have submitted a new
application to.
Too many accounts. The types of accounts you have makes up 10% of your total
score. Owning too many credit cards will give you a lower score especially if it
is the only type of account in your credit history. Ideally, you should have at
least two to three different types of accounts that are all in good standing.
Apart from a credit card account, having a mortgage, or a car loan can boost
your score.
Closed Old Accounts. There are instances where you close your oldest credit
card accounts because you don't use them anymore which is not advisable since it
is like erasing the oldest part of your credit report. It won't be necessary to
use your old credit cards often especially if they have high rates. But you can
use them for small purchases every once in a while just to keep them from
automatically closing.
Errors in your credit report. Even if you do your best in keeping up with
your payments, it is still possible for you to get a low score because of
incorrect charges or information in your credit report. In fact, misinformation
and inaccuracies are common in credit reports. Checking your credit report at
least twice a year is very important for you to
monitor any mistakes or errors and you can have it corrected immediately. If
there are incorrect details, don't hesitate to send a dispute letter to the
credit bureau that issued your report and ask for corrections immediately. In
order for you to get a free credit repair guide, you can go to a trusted credit
counseling agency.
© 2010 Suzy Vanstrusen is a credit analyst and a writer of the website
http://www.ezcreditrepairsolutions.com and has been providing consumers with
tips and tricks in repairing your credit. Check the site for more
free credit repair and
credit report score.
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