Jan 012011

Your credit report is one of the most important documents that make an impact on the quality of your life! A good credit report is an invaluable source of information. You may not have to seek credit and yet you still need a good credit report. Institutions accessing your credit report can vary from credit card companies to your doctor’s office to landlords, cell phone companies and law enforcement.

You are empowered to control this situation by learning the rules by which you are measured. Learning the rules of how credit works will put you in control of the situation. YOU will be in the driver’s sit, negotiating with your creditor. And, the good thing is that most of us can achieve this, once you learn rules by which the credit granting industry works by. Remember they want to give your money, but YOU have to convince them that you are going to pay them and by the terms of the contractual agreement.

Your credit report is a record of your past borrowing and repaying history. It offers vital information about your credit history. Credit reporting agencies simply record the information your creditors submit. A credit report summarizes past creditors’ experiences with a consumer. Information from the file is obtained by prospective lenders to help them determine whether someone is a good credit risk. The creditor actually rates your account.

Financial institutions considering your creditworthiness use this information measure YOUR credit worthiness. It helps creditors to determine whether a potential customer is a good credit risk. And, this translates to the interest rate you will charge.

The Higher The Risk = The Higher The Interest Rate!

 Judgements or bankruptcies are part of the public records which are listed on your credit report, also accounts placed for 3rd party collections.

You can enter a personal statement, which will become a permanent part of your credit report. This is where you can explain your side of the story! But, remember professional lenders respect the decisions and opinions of their fellow lenders more than someone explaining why they didn’t pay. The lender gave their money in good faith expecting it back.

You should obtain a copy of your personal credit report and verify the information your creditors are receiving about you is accurate, at least twice a year. If you find errors in your credit report, notify the credit bureau in writing.

There is no way to remove accurate negative information on your credit report, except through time. Adverse information will remain on your report for 7 years from the date of last activity. Note! The credit grantor designates the account as in house collection and eventually the account will be send to a 3rd party collection agency, which in turn will post the information separately on your credit report. (Dates can vary per State)

 Want to learn more – see: Complete Credit Guide – Insider Information


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