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Learning How to Use Your Credit Report

There are things no one will tell us about our credit report. For instance what will low our credit scores? How do credit cards affect our credit report? How does having a credit history affect our credit report?

Things that will lower your credit scores:

Having a high balance on a credit card.

Letting companies access your credit report, if you are looking for a new mortgage make sure that each company you go to accesses your report in the same two-week period. If you allow a company to access your report outside of that two-week period you are letting them “hit” your credit score. Each time someone accesses your credit report they are taking away points, unless it is in that same two-week window.

Allowing anyone access to your credit report. Be very careful who you let access your report.

Changing credit cards within a six month to a year period.

Closing a credit card.

Not having enough credit history. As a younger person you may not have any credit history. Without a credit history you do not have anything on your credit report. This can affect the interest rate of loans. It is funny that not having a credit history will increase your interest rate just as much as having a bad credit score will increase your interest rate, but that is the truth.

You need to have credit cards, car loans, and mortgages to establish a credit history. You also need to keep each item in good standing by paying the monthly payment on time in order to keep a good to excellent credit score.

Your credit report is your avenue to getting good loans with low interest rates. The key is establishing your credit report with a good history. While you may not want credit cards because you are afraid of having that balance the fact is you need to have that credit limit on your credit report.

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