1. How to keep Credit Report clean?
Your credit report, when showed to banks and lenders will reflect yourself. Even if
you didn’t mean to leave those marks on it, they will still think that it’s your fault. That
is why having a clean report is very important. Your report will determine whether
you are worthy enough for a loan from banks or lenders. Your credit will show
income to debt ratio, delinquencies, issues about your credit and even late
payments. So if you are planning to cover or clean up your account, the better. Good
thing there are simple ways for you to clean it. We give you the best tips in order to
keep your credit report clean.
Routine checking- Your credit reports need to be maintained and taken care
of. It’s not something that will just clean itself and give you a remarkable
record. It needs to be checked, if possible every 3 or 4 months to keep you
updated with all the transactions, even the fishy ones. Just get your free credit
report every year from the big credit agencies. You’ll also be updated with late
payments, or exceeded limits. Check it for errors and if there are any, file a
dispute immediately to your credit bureau to remove them from your report.
These errors can affect future transaction and can make you look bad in the
eyes of the lenders.
Pay regularly and on time- Paying on time will keep your credit score up and
prevent bad records from coming in your record. Missed payments will stay on
your credit report for 7 years or more and they are very hard to remove so it
pays to show a little effort when it comes to your bills. Also, try to pay for more
than what is required, it’ll help give you a boost and you’ll be able to finish off
your balances faster than the usual.
Make a budget- Making a budget will help you stay within your limit.
Exceeding limits is another no-no when it comes to maintaining your credit
report. You’ll know when enough is enough with a budget. You will also know
when to use your card and when to pay for cash, that way you will be able to
stay 20-30% below the limit.
Again, your credit will reflect how you do the works, be it business or personal
matters. A clean credit report will get you through banks, lenders or even companies
easily.