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Keep Your Credit Report Clean by Avoiding Mistakes

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					                          Keep Your Credit Report Clean by Avoiding Mistakes


Lenders, utility companies and even employers are taking account of consumers’ credit reports and
other information offered by credit report bureaus. They also take note of credit scores as these can
help them determine the risk associated with an individual. Hence, it is vital to update credit statements
and keep them free from any errors.

One should always be aware of the factors related to credit reports where mistakes often occur:

     Closing credit card accounts

      This is one of the biggest credit report mistakes. We always close old credit cards that we no
      longer use, but, closing these accounts, also delete parts of your credit history and could create a
      significant decrease in your credit score. Payment history plays a big role in the calculation of your
      credit score so avoid closing old accounts; just make sure these accounts are updated and
      regularly checked.

     Missing payments

      This is the most reckless thing to do that can greatly ruin your financial reputation. A one time slip
      can damage a good credit reputation. Always create a reminder for yourself to ensure that a
      payment is never missed. Showing responsibility towards the payments of bills creates a good
      credit reputation. In case you have missed the payment, immediately inform your creditor in
      advance; this will portray your honesty and integrity.

     Clearing past due accounts

      This will downgrade your reputation and also affect your credit score. Settling accounts after their
      due dates can create a negative impact on your credit report. This will hinder future creditors to
      give you credit or approve your loan.

     Over-utilizing the credit

      To have credit, you should use credit. However, take note that you should never exceed your
      credit limit. The amount you owe plays a big role in the calculation of your credit grade. It is
      always suggested that no credit card or installment loan should exceed 35 percent of their limit, as
      exceeding this value will decrease your score considerably.

     Exceeding the limit shopping for credit

      When you are searching for a new credit card plan or loan, it is advisable to look for a plan that
      suits your financial needs. Always compare the various credit card plans available and pick the one
      that fits your requirements best.

				
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Description: Lenders, utility companies and even employers are taking account of consumers’ credit reports and other information offered by credit report bureaus. They also take note of credit scores as these can help them determine the risk associated with an individual.