A lot of people don't know about their own credit report. Some people even don't know that it even exists. Because of this, they tend to regularly neglect payments for their loans or their credit card bills. The result: a bad credit score. Basically, you have to remember that your score is your financial profile. It tells a lot about you financially and it is what determines whether creditors or lenders will approve you for the loan or the new credit card you applied for or not.
The credit report is what creditors take a look at in order to determine if you are risky to lend money to or not. This is what basically tells them that you are a good payer or you are a delinquent one. Even landlords take a look at their prospective tenant's credit report to make sure that their future tenant will be able to pay the rent on time and also make sure that they will never run away in the middle of the night with payments worth 3 months rent.
As you can see, it is very important for you to make a good credit score by making a good credit report. Although the credit bureaus are the ones who make the report, you have to remember that they base the report on what you do financially.
In order to get a good credit report and a good credit score, you need to be able to make payments on or before the due date. By doing so, it will be recorded in the report and will have a positive impact on your credit score.
Basically, you alone are responsible on how your credit information will look like and how much credit score you have. If you are a good payer and you only made late payments once or twice, you will be able to get a positive report and score. In fact, if you are a good payer and you only have one late payment because of an unavoidable situation, then you can even have the negative report removed.
These are the things that you have to remember about credit report. It is your personal financial profile that you alone are responsible for making.
The better you pay off your credit card bills and your loans, the better your credit score will look like. So, you definitely need to take your repayments seriously. If a bill arrives, pay it off as soon as you can and never ever think about paying it off next week because you are lazy to get out of your couch and go to the bank. Your laziness may cost you your credit score and will give you a bad name in the eyes of your creditors.
These are the things that you need to remember about credit score, credit report and why it is very important for you to repay your bills on time.
However, there are times where your credit report might be bad even if you know you pay off your bills and loans on time. It may be caused by credit card fraud or it may be caused by mistakes made by the credit bureaus themselves. Just get a copy of your credit report and if you see any irregularities, dispute it, prove it and it will eventually clear up.
Your score is your financial profile. Always make sure that you have good credit in order for you to have more financial freedom by paying off your bills on time as well as constantly reviewing your credit report at least once a year.