Understanding Your Credit Report

Your credit report can be one of the most important pieces of information when it comes to your financial health. It is important that you have an understanding of all that it contains and how it relates to future credit you may apply for.

Your credit report says a lot about you

Your credit report tells a lender what kind of borrower you are. It tracks late payments, collection requests, and bankruptcies. It also tracks on time payments, loans that are paid off, and accounts that are opened and closed. It is your history and it can affect your future.

Too much credit can hurt you

It seems silly, but having too many credit card accounts on your credit report can actually hurt you even if you have no late payments and carry a low balance. Lenders worry that because you have the ability to run up high credit card bills, you might accrue a large debt and be unable to pay them back because you have other bills to pay. If you have credit cards in your wallet that you seldom use, close the accounts. Instead of carrying three gas credit cards, trim down to one, or put your gas purchases on a general use credit card.

What you don