All about Your Credit Report:Establising, Securing and Maintaining

A Credit Article Contributed by Miranda Hill

Credit Report

A credit report is a report containing the credit history and current status of a person's current credit situation, also known as your score. Your credit score is usually based on your: credit past; who has reviewed your report; information that has been given to the credit reporting agency; your specific identification information; and any related informatory notes and comments. Information such as bankruptcies, defaults and even payments made late will appear in your credit report.

Your credit report is used widely by lenders. (such as banks, car dealerships, and prospective employers) Did you know that many employers today turn down potential, not to mention perfectly qualified applicant's based on their credit . In addition landlords can check your credit and refuse to rent or lease to you because of findings included in your credit report.

Even though you may get approved for an auto loan your score will determine how much and how long you will eventually end up paying for your vehicle. Building, securing, and maintaining your credit can be a confusing and frustrating process, but there are many resources available today to help you step by step along the way.

Establishing Your Credit Report:

Remember that credit report is affected by occurrences such as late payments and defaults. Therefore when you establish you credit you should never buy something that you really can not afford. One of the most popular ways to start establishing your credit is of course, credit cards. You should be wary of offers and you should not jump on the first high interest card that is offered to you.

Once again you may end up paying twice or even three times the amount that the items were originally purchased for. A pre-paid credit card would probably better to start out with. One of the main purposes for this type of card is to help establish or re-establish credit. In addition many of highly accepted credit card companies offer such cards. You can also establish credit through a co-signer. Which is when you apply for a loan you have someone with a high credit score co-sign on the loan.

In such instances both you and the co-siger apply and are held responsible for such said loan. In return it can affect both persons credit report depending on how the loan is re-payed. Another option is collateral. Some lender's will accept collateral of certain value as a security deposit or down payment of sorts.

Securing Your Credit Report:

To secure your credit you must be responsible for not only for amount's you spend, (wether or not you can really afford it)how timely you pay your bills, (due dates and EXC.) and making sure you don't default but you also have to keep track of your credit cards, bank statements, and other personal information so that you don't fall victim to fraud. Keep all personal information such as pin or access numbers or passwords in a separate place than your credit cards, debit cards and check books.

Dispose of all paper documents no longer needed referring to such accounts in a proper manner. Such as using a paper shredder. Be careful who you give personal information to. If you lose any of those items or suspect fraudulent activity be sure to report it right away to the bank or financial institution from which it was issued. If you keep close tabs on and use careful, well-thought actions towards your credit you should have no problem securing your credit.

Managing Your Credit Report

Nowadays managing your credit is really simple. With the internet and programs such as Microsoft Money all you have to do is enter basic information and sit back and let the program do the rest. Many websites even offer free credit reports and memberships that alert you to changes and allow you to check your credit report regularly.

Now that you know a little more about your credit report and how to manage it and those things that pertain to it. You are ready to enjoy the ability to enjoy those things that you may not have cash readily available for. Be forewarned though don't buy the Porsche until your sure you will still have a garage to park it in next month!