Is Your Credit Out Partying While You're Stuck At Home Paying Bills?
Did you know that you aren't the only person who can gain access to your credit history? Certain people and institutions are permitted to legally view your credit history; many times, this can be done even with notifying you. Every inquiry leaves a mark on your credit history and lowers your credit rating. An action as simple as applying for a great job or requesting a loan opens the floodgates for these establishments to investigate how you handle your financial matters. Not until you later review your credit history do you discover how many inquiries have been recently made. Taking a proactive approach to understanding your credit history is important. Understanding how your history affects your credit rating is important so that you can work toward improving bad reports that may only get worse over time.
What harm could there be in filling out a few credit card applications at the mall just so you can get the free beach towel? If you've opened the door for lots of inquiries, your rating goes down with each inquiry. Come the time when you really need a loan, you may find you're denied from slightly less than desirable credit. This is bad news especially if you've been attentively paying off your debts in a timely manner. However, the fact stands ~ if you go out partying with your credit and allow institutions to peek at your history, you're leaving yourself open for bad credit. While some creditors overlook these types of blemishes, others don't look past the rating score and care about the cause of the low rating. Many creditors will mistake you for irresponsible. All this just because you wanted a free beach towel!
You are allowed to explain to lenders harmless infractions such as too many inquiries on your history. The trick is you must make this report in a timely fashion or the lender won't turn the other cheek. The safest way to avoid a low credit rating from inquiries is to not apply recklessly with credit card companies for at least a good amount of time before you actually apply for a major loan such as a mortgage loan or a car loan. This should increase your chances that the inquiries are off your history and your credit is back up to good standing.
Even when you apply for a job or fill out an application for a rental property, these sources can leave check marks on your credit history and ruin your rating. In reverse, apply for jobs a while before you need a loan.
The surefire way to make sure your credit history is free of bad marks is to check your history long before you need a big loan. When you have ample time to fix any problems or dispute discrepancies, you can actually improve your credit. You might be amazed to discover that many of these marks come from inaccurate reports made by your creditors. Many credit bureaus are equipped to help you fix these reports and other errors. In fact, many credit bureaus are willing to take your side and help you correct any problems.
The absolute worst time to go over your credit history and make it healthy again is when you are also seeking a big loan. The Annual Credit Report (http://www.annualcreditreport.com) is service provided by the three main credit bureaus in the U.S. to help regions of the country every year obtain a free credit report.
Copyright 2005 Gianni Myrtle. All rights reserved.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Gianni Myrtle is the owner and operator of Fob Credit which is a leading on-line resource for credit information on the internet. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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