Credit Report: What Should You Look Out For

Copyright (c) 2010 Suzy Vanstrusen

Are you aware of the things that can badly hurt your credit score? Do you know the specific remarks that you should avoid seeing in your credit report? In this article, we'll talk about the most damaging things that must never be found in your credit report. Be aware and take the necessary actions to avoid all 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 bet that it will be lowering 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 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 counselling agency.

Suzy Vanstrusen
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.