If you have never read your credit report it can be a little
difficult to understand at first glance but the good news is
that your credit report gives you all the information you need
to strengthen your credit, where you need to work on your
credit, and exactly where you stand with your credit history.
Understanding your credit history is particularly important when
applying for larger loans, bigger credit lines, or when you want
to purchase a big-ticket item on credit. For example, say that
you want to buy a house, which requires you taking out a
mortgage, making monthly payments and keeping up to date on your
bills, understanding ahead of time if your credit is good or if
you need a little work on it will help you take this step in
obtaining a loan much easier.

Start looking over your credit report to ensure that your name,
address, employer and your social security number are all
correct. This is the first step in keeping your file correct.
Your credit report will also include any names that you have
used in the past, your maiden name, as well as where you have
lived in the last three to five years. Each account that you
have obtained under different names will be listed on your
credit report under your social security number.

As you review your credit card, you will notice the different
addresses you have lived at. if you have had several addresses
in just a short time this could be a key reason why you haven’t
been able to obtain a credit card or a large loan recently.
Financial institutions want to be able to contact you in regards
to your account, when they feel that you haven’t stabilized your
life yet and settled down into a home. Living at one address for
at least a year will help you get a loan.

Reading through the listings on your credit history you will
find all the listings will include any loans and credit cards
that you have carried and possibly even accounts that have been
closed by you or the financial institution where you had
obtained the credit card or loan through.

Under these listings, you will see your account numbers, the
amount of the loan that you had taken out or the high limits
that you were allowed to use on a credit card. This is important
information for another financial institution to see because
they will know that you have had the opportunity to get money
else where for this amount as well. Beside the credit limit
amount you will also see what your high balances have been. For
example, if you had a two thousand dollar credit limit but you
have never charged more than five hundred dollars to this
account this will tell the financial institution that is
reviewing your credit history that you are very careful with
your money and you are responsible with your credit lines.

Look at the credit report a little closer and you will notice if
you have ever been reported as paying late, if you have ever
been late, how long your payments were over due (such as thirty
days past due, ninety days and etc), if you have any accounts
which are currently past due you need to bring these accounts up
to date by making a payment on the account and then requesting
them to update your credit history to reflect that you are up to
date on your payments.

When you want to take out a larger loan, it is important to find
out what your credit report says about you before applying for
the loan. Do this so you can take advantage of the time you have
to fix any late payments, errors on your credit report and to
open a few smaller accounts. If you do not have any credit
history it would be wise to open a few smaller accounts in the
process of building credit before applying for a larger loan.

Building your credit is a life long process and reviewing your
credit report at least once a year will ensure that your credit
report reflects each loan and credit card accurately. Reviewing
your credit also keeps you on top of any problems with identity
theft or accounts opened in your name without your knowledge.

About the author:


Matt MacDowell is an expert in the personal credit building
process. Learn the 6 biggest issues that US consumers face today
in building a great credit score. Learn more at href=”www.creditatonce.com
Credit At Once.