It's sad but true. In today's world, the way society is set up, your value as a human being is determined by the type of credit file you have. If you have a good, healthy credit report, you'll be able to enjoy the good life. An easy life. Never will you have to struggle for a loan, credit card offers will roll in on a daily basis, and you'll never find yourself wondering whether or not your credit is going to stand between you and the things you want out of life.
On the other hand, If your credit is less than perfect, you're going to find yourself at the bottom of the financial food chain being eaten up like plankton at the bottom of the sea. A bad credit score can haunt you like the bad breath you get after wolfing down that anchovy and garlic pizza. A bad credit score not only makes creditors reluctant to extend you a line of credit, it forces you to pay higher interest rates. It may even keep you from getting that job you've always dreamed of. Let's take a minute and address some frequently asked questions when it comes to credit and your credit report.
What is a Credit Report?
Simply put, your credit report details your credit history as it has been reported to the credit reporting agencies by companies that have extended you credit. Phewy! Did you get all that?
What Kind of Information is on Your Credit Report?
Your credit file is going to list what types of credit you use, the length of time your accounts have been open and whether or not you've paid your bills on time. It tells lenders how much credit you've used and whether or not you're seeking new sources of credit. If there is any history of late payments,or if the line of credit was included in a bankruptcy, charged off or put into repossession, it's going to show up on your credit file. Your creditors are also going to see whether you have had any bills put into collections (this includes medical bills, unless you have already established a plan for payment).
How Much Credit Does It Take For Me to be Denied Credit?
Unfortunately, just about anything negative is going to seriously impact your ability to get credit. One late payment can become a Huge obstacle in your way when applying for some lines of credit. It's best, if at all possible, just to keep your credit report squeaky clean.
How Long Will Information Stay on Your Credit Report?
There is no minimum time frame that an item will stay on your credit report. Per the Fair Credit Reporting Act, most negative items have to be removed within seven years, bankruptcies within ten. Inquiries only stay on your report for two years before being deleted. Keep in mind, excessive inquiries on your report can short circuit you loan efforts with any lender, however, so be careful when shopping for credit.
Who Looks at Your Credit Report?
The answer to this is pretty much anyone that might grant you credit. With the passing of each year, your credit report is used more and more often as a yardstick to measure your character. Every creditor is going to want to see at least one of your credit reports before granting you credit, and it's becoming increasingly common for insurance companies, apartment complexes and employers to check your credit before making a decision about your eligibility.
So you see, your credit report is quickly becoming much more than a simple report on how reliable you are repaying your loans. Your credit has become the yardstick by which you are judged as a person. It's true, your credit report has become the facts of your life.
Mitchell is the owner of a lucrative, eco-friendly home business out of Colorado, USA. He is a business coach and personal mentor assisting other serious Network Marketers in building lucrative and sustainable online businesses with multiple income streams.
To learn more about ways to improve your credit score or even apply for up to $150,000 in credit, visit: dillmansolutions.com dillmansolutions.com
To visit with Mitchell directly concerning your financial future and Internet Marketing, go to: mitchelldillman.com/partner-with-mitchell mitchelldillman.com/partner-with-mitchell/
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