Credit Cards and Credit Reports
Over the years, credit cards have become very popular. When they were first introduced, they
were popular, although these days millions of people use them. There are many types of credit cards available,
including those that help people who have bad credit. You should always keep in mind that even though credit cards
are great to have, they will also have quite an impact on your credit report.
The credit report is extremely important, especially when it comes to credit cards. Banks and lenders use your
credit report to determine if you meet their criteria for a credit card or a loan. Your credit report is the
determining factor for your credit, which is why you should never let your credit cards do any type of damage to
your report. To avoid this, simply pay your bill on time.
Most people will use their credit cards responsibly and won’t damage their credit report. Doing this will show
lenders that you are responsible, and that they can trust you with loans and credit - which in turn will raise your
credit score. Keep in mind however; if you have a lot of open accounts, it may tell lenders that you have a lot
open and that you won’t be able to pay them back. Although this may count as good credit, lenders look at several
open accounts as being potentially damaging to your credit report.
Although you may be tempted to have more than one credit card, it can actually be a downfall in the eyes of the
lender. Most lenders will see this as you having a way to spend all of your limit, and will fear that you may do
so. Even though you may not have this intention, credit card lenders will almost always fear the worst case
scenario, and it eventually lead to you damaging your credit score - simply because a lender will turn you down for
a future offer you apply for.
Something else you need to keep in mind is the fact that it can be really easy to miss a payment on your credit
cards. Although this doesn’t sound bad, it can have a very negative look on your credit report. If you start
missing payments or paying them late, the lender will eventually enter it in your credit report. This can have a
negative impact, lowering your beacon score and eventually bringing down your overall credit rating.
If you play it safe and only get one or two credit cards and keep a track of how you use them,
you won’t need to worry. Your credit report should always be a primary concern, and you should
always do your best to ensure that it stays free of negative ratings. If you keep up things up to date - you’ll
enjoy the benefit of a positive credit report.
Credit in Minutes Tip #1
Stay on top of your credit report. Most credit reports contain errors. Make sure you check your credit report
every year (you get one free credit report every twelve months) and if there are errors make sure to challenge them
with the reporting credit agency. Credit agencies are required to investigate each and every challenge that gets
Credit in Minutes Tip
Just because you qualify for all of those credit cards does not mean you should get them. A person with too many
credit cards looks sketchy in the eyes of a potential creditor. Think of it this way: if a person is financially
stable does he or she need ten different credit cards? Wouldn’t just one or two suffice?
Credit in Minutes Tip
The best way to raise your credit score is to make all of your payments on time. It sounds too simple to be
true, but that’s all there really is to it. Staying out of debt and/or making all of your debt payments on time
will keep your score up where it should be.