Making Sense of Your Credit Report
Are you seeking to make any major purchases in the near future?
Applying for a loan?
Any of these will ultimately call upon one major factor: your credit.
It is one of the end-all-be-alls when it comes to financing. As such, it’s imperative that you understand everything your credit report is communicating.
It’s always good to monitor your credit report, even when not eyeing a big spend.
First, it’s good to check your personal info to make sure that everything is accurate. This includes your social, birthdate, and few more important identifiers.
Keep a Close
Eye on Your Accounts
Another key piece of info on your credit report are your accounts.
This is a key roadmap of your credit history. From lines of credit, to loans, debts, and much more. And this is only the baseline of information covered.
If you’re applied for credit, a loan, or are embarking on a big spend, your credit will most assuredly be checked.
Known as an inquiry, these reviews impact your score based on its level of severity. There are soft and hard inquiries, and each will cause you to lose points on your score. Be careful here: the more frequent your reports receive an inquiry, the lower your score will start to plunge.
The Biggest Factor when it Come to Your Credit
Of all the inclusions on your credit report, by far the most integral is your payment history. This will make or break your score, along with your chances of securing better interest rates. The next most important are your collection of debts. The more inconsistent your debt management, the more it harms your score.