• Debt Settlement
• Debt Consolidation
• Bankruptcy
• Credit Cards
• Budgeting
• The Debt Settlement Process
• Debt Related Definitions

Keeping your Credit Clean

If you want to keep on top of your financial health, you should make sure to take full advantage of your free annual credit report.  This will give you a rundown of how potential lenders view you, and give you an opportunities to spot mistakes.  But it is important to remember that your credit report is different from your credit score.

Your credit score is simply a number between 350 and 850 that gives a snapshot of how healthy your credit is.  Your credit report is much more detailed and specific. Here is the kind of info you should expect to see on your credit report.

Personal Info – Every credit report starts out with your basic personal information: your name, your social security number, your birth date, and your address. When you receive your free credit report, definitely make certain that all this info is up to date and correct. If you see addresses that you don’t recognize, or if you name is misspelled, these could be signs of identity theft.  Check with the credit bureaus to try and get this information corrected and see if you need to freeze your account for your financial safety.

Your Credit Accounts - The next thing listed is just all of your credit accounts.  This includes your credit card accounts, your mortgage, your auto loans, and any other credit accounts that you may have opened.   Lenders like to see a variety of different accounts, rather than a bunch of accounts of just a single type.  If you open up a credit card account, an auto loan, and mortgage, for example, it may signal that you are only opening an account when you really need it.  If you have a ton of credit card accounts, lenders may interpret this as living beyond your means. Do not, however, try to open up a new account just to diversify your accounts.  In fact, having too many credit inquires can actually hurt your credit.

Credit Inquires - The next thing you should find on your credit report is a list of people who you authorized to snoop into your credit history.  Why exactly does this matter? Well, a bunch of people looking into your credit is thought to be a bad sign by most creditors.  It might signal to them that you are relying far too heavily on credit to pay for your expenses.  So the more listings that you have in this category, the lower it can make your credit report.

Collections Info – The last bit of information on your credit card is probably the most damaging if you have it. Collections information appears on your account when any credit account becomes so late that it is referred to a collections agency.  Even if you eventually pay off the debt in full, this information can stay on your credit report for a full seven years.  The only way to avoid this is to make sure that you pay your credit accounts on time every month.