Credit Report: What Negative Remarks Should You Look Out For - By: Suzy Vanstrusen

Most people are aware of how important a good credit score is. A credit report is being checked whenever a person is applying for a new credit card, loan or even a job. It indicates a person's credit worthiness. In this article, we will discuss the specific remarks that should never be seen in your credit report. Knowing these things 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. Closing your oldest credit card accounts just because you don't use them is like erasing the oldest part of your credit history. You don't have to use your old credit cards frequently 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.

Copyright (c) 2010 Suzy Vanstrusen

About the Author

A credit analyst and a writer of EzCreditRepairSolutions.com , Suzy Vanstrusen 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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