We hear a lot of talk about credit reports and finding out about whether we have a good or bad one but, how important is maintaining a good credit report, and is it something we should be concerned about? Of course, we are all aware of the benefits of being sensible when it comes to money but, what if you decide its time to make a big investment and buy a home? Could your credit report affect your approval for a loan? Simply put, yes it could. The reason for this is that a lender will often refer to your credit report to get a good idea of how you are with money. For example, they will be interested in how much debt you have and whether you pay your bills on time.

So, what if you don’t have a great credit score, are there some ways you can work to improve it? One suggestion would be to make sure you pay your bills on time. Late payments will affect your credit report not to mention cost you a lot in late payment fees. If you have trouble remembering when to pay, why not set up an automatic payment plan? Even if this only covers the minimum due it will help avoid the ill effects of a late payment.

Are you someone who has accumulated a variety of credit cards over the years? If you have some you no longer use, call the company and cancel them. While having a credit card can reflect well on your credit report, especially if it shows a long history of paying them off, too many cards can give a lender the idea that you allow yourself too much available credit and will readily put yourself in economic danger.

If you are unsure about your credit report, why not request a free copy? You are entitled to a copy of your credit report every year so take advantage of this provision. This way you can see it before applying for any loans etc. and give yourself time to work on it if necessary.

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