Without a credit report you cannot get credit. What does that mean to you the consumer? A solid credit report will get you that new car. A credit report or credit history is needed for your first major investment in a new home. Many employers will now check your credit report before they hire you for that great job you have been trying to land. What will a bad credit report get you? A bad credit report will get you, quite simply and quickly, rejected. (more…)

Maintaining a good credit report is one if the most important steps to being able to buy the home or car of your dreams. Often times, people don’t think about the state of their credit report and how much it can affect their chances of qualifying for a loan. Every bill you pay late or credit card statement that exceeds your limit gets factored into this report that follows you for a lifetime. To ensure that your credit report remains in tip-top shape, there are three basic concepts you should understand completely.

What is a Credit Report?

A credit report is a basic statement that details your financial history. Credit bureaus, the companies that generate these reports, keep track of every utility bill, credit card bill, and UK loan payment you have ever kept in your name. Your credit report gives you a score based on your credit history. Your score is calculated by factoring in things such as how much debt you have, your bill-paying habits, and how long you have managed your credit.

Late payments and major outstanding debt decrease your credit score, and alert financial institutions to the fact that you sometimes have trouble getting your bills paid.

How Do I Prevent a Bad Credit Report?

Before you get into trouble with a poor credit report, there are preventative steps you can take initially. First of all, organization is a key factor in preventing bad credit scores. Because you are scored on your bill-paying habits, just knowing the dates your bills are due every month, and getting them paid on time will be a huge boost to your credit score. It is easy to keep a calendar and jot down the date every month by which your bills need to be paid.