Building A Credit Report Lenders Will Love You For
Will lenders really love you for having a good credit report score? Love is not the right word of course; lenders are after your money, and never forget that. But the lender's representative will love dealing with your credit application if your credit report is good. If you have a high credit score and spotless credit record, then when you apply for a large loan, you stand a good chance of not only getting the loan approved, but obtaining a competitive interest rate.
How, then, do you go about building up a good credit report score?
The most important thing you can do when beginning to build a good credit report is to always pay your bills on time and to never, ever borrow more than you can afford to pay back. It sounds simple and obvious, but unfortunately, credit can be very tempting, and if you allow yourself to be seduced by the allure of easy credit, you could quickly find yourself in some difficulty. Credit card debt is often the biggest and most impulsive temptation. However, it is essential for your financial well being, and for building a good credit report, that you set and remember your long term goals. You must resist the instant gratification of easy and expensive credit, such as with a credit card.
These days, if you have a good credit record, as reflected in your credit report, it means more than ever. Your chances of getting a car, a house, or being approved for personal loans or credit cards, has for many years been affected by your credit report. Increasingly, though, the report is being accessed for more reasons. Background checks by employers, for example, may include looking at your credit report, and even insurance companies sometimes consider credit reports when deciding whether or not to extend coverage.
To achieve a good credit record, you must have shown that you have borrowed money and then paid it back in accordance with the terms of a loan, with regard to both times and amounts. It also means that you have shown that you do not over extend yourself on credit. One thing to be careful about, though, is not to apply for a lot of loans or credit cards just to increase your chances of being successful in obtaining credit with one. If you do it too many times, you may look like a high risk.
It is a good idea to start building your credit reputation as a young adult. Whether through cell phone ownership or student credit cards, you can start to convince lenders you are a good credit risk, by paying on time every time, and if possible by more than the minimum.
A next step to building a good credit report score is by taking out a car loan. Cars are generally expensive, so a car loan is a real test of your credit score potential. Paying that loan off on time will have a wonderful affect on your credit reputation and report.
Once you have been using credit for a while, you may find it beneficial to monitor your credit and make sure all is well. Request a copy of your credit report once a year, from each credit bureau. It is important to know which of your credit accounts appear in which reports, and to ensure they are all accurate. It is okay to increase both spending and credit, so long as you do not over extend yourself. If you find mistakes on your credit report, make sure you follow the Bureau's instructions to challenge it, in writing. If you follow these steps, you can get your credit rating up to an AAA status and keep it there.
Roy Thomsitt is the owner and part author of http://www.eliminate-credit-card-debt-now.com
MORE RESOURCES:
 Washington Times | US Consumer Credit Increases $14.3 Billion in June (Update2) Bloomberg - Consumer credit rose by $14.3 billion, the most since November, to $2.59 trillion, the Federal Reserve said today in Washington. In May, credit rose by $8.1 ... US June consumer credit rises by $14.3 bln, 6.7 pct annual growth rate Consumers jack up borrowing in June Ahead of the Bell: Consumer Credit |
 Voice of America | US Government charges 11 in massive credit card fraud case Heise Online, Germany - The US government has charged 11 people with stealing tens of millions of credit and debit card details as part of an operation that targeted numerous ... Video: Feds Charge 11 in Massive Retail Hacking Case Credit cards: US authorities charge 11 in global identity theft racket Gang charged for theft of 41 million credit card numbers |
Credit Suisse Sued Over Auction-Rate Securities (Update3) Bloomberg - 7 (Bloomberg) -- Credit Suisse Group, Switzerland's second-biggest bank, was sued by Swiss semiconductor company STMicroelectronics NV for allegedly placing ... STMicro sues Credit Suisse over auction-rate debt |
 Washington Post | Here comes the credit crackdown Independent, UK - One year into the credit crisis, regulators are hard at work on new laws they hope will prevent history repeating itself. Leading investment banks fear a ... Industry group to address credit risk Panel Calls for New Risk Standards Banking Group Proposes Wide Range of Reforms |
 AFP | Barclays' Profits Hit by Credit Crunch BusinessWeek - by Kerry Capell The credit crunch continues to take its toll on British banks. On Aug. 7, Barclays (BCS) revealed its first-half pretax profits fell by ... Barclays: credit and credibility Income at Barclays declines less than analysts expected Barclays Profit Falls 34% on Securities Writedowns (Update2) |
Consumer credit jumps at fastest rate in 7 months MarketWatch - Consumer credit, excluding mortgage debt, expanded at a 6.7% annual rate in June after rising at a 3.8% pace in May. It was the biggest increase since the ... Credit-card Companies Making It Harder To Say 'charge It' CreditCards.com: Weekly Credit Card Rate Report Reform credit card industry |
 Earthtimes (press release) | Consumer credit rose $14.33 bln in June Reuters - WASHINGTON (Reuters) - US consumer credit expanded at the fastest rate in seven months in June as Americans turned to credit cards and consumer loans to ... Consumer credit rose $14.33 billion in June |
BC-based Lake View Credit Union Selects Open Solutions' Core Platform MarketWatch - Lake View Credit Union has assets of more than $200CDN million and serves 15500 members through three branches. This year, the credit union celebrated its ... |
Bridge Finance Group Provides a $4.0 Million Revolving Line of ... MarketWatch - CHICAGO, Aug 07, 2008 /PRNewswire via COMTEX/ -- Bridge Finance Group announced the completion of a revolving line of credit to Access Distribution, ... |
Regulators orders CNG to credit customers Hartford Courant, United States - Commissioners of the state Department of Public Utility Control voted unanimously to require the utility to keep the credits in place on customers' monthly ... Conn. regulators may order CNG to credit customers Regulators orders CNG to credit customers Regulators may order CNG to credit customers |
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