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What are Important Measures to better manage your Credit Report and Credit Score?

By Derek Brown
Published: Thursday, June 3rd, 2010

Being able to read and understand your credit report is important for you to better manage your credit. Your credit score is not the summary of your credit worthiness, so by just looking at your score to gauge your financial health is not enough. On the other hand, understanding every detail can keep you out of trouble. Below would be a short list of credit report nuisance that may affect your score as well.

  1. Unknown Data – It is important that you are familiar with every accounts and personal information posted on your report. Any data like address changes or account opened without your prior knowledge could mean that someone has been using your identity and had damaged your credit to its worst. If you see any of this on your credit report, seek help. Call the creditor listed so they can investigate.
  2. Late Payments – Forgotten bills of at least 30 days late will not only cost you late fee but also a score down on your report. These data will negatively affect you for 7-10 years. So it is not worthy at all. Better communicate to your creditor to move the due date so they can make some adjustments.
  3. Maxed-out Credit Cards – You may be paying on time with your credit card fees, but a good piece of advice is, not to max out your credit card balances. High balances may put your score down but on the other hand, maintain your credit card’s balance below a 35% threshold could create a good impression that you just purely rely on debts.
  4. Credit Score Disparities – It is important to consider that the three national credit bureaus namely Equifax, Experian and TransUnion doesn’t work in a synchronize fashion. Your creditors has the discretion to report with all of them or with just one, two or not at all. Considering this fact, the three bureaus may then generate different score. If you want them to have uniform information, you can actually call your creditor to report to the bureau that doesn’t have the information that you found on the other report. If they still generated different scores, it is advisable to call the credit bureau.

Putting this into consideration would be of great help to better manage your credit accurately.

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