Every Day is a New Day on Your Credit Report!

What many people might not release is that your credit report is based on your credit history. Transactions, payment records, amount of credit extended, inquires, and etc. You'll also see personal information like current address, maybe job history, or other information entered by you or your creditors. Both positive and negative entries are listed for up to 10 years (bankruptcies can be listed for 10 years but most entries have a 7 year life).

Negative items can be updated and start the 7 year clock again at that point too. Anytime you have an opportunity to resolve any negative items, it's in your best interests to do so if possible. And what about that all important credit score? Well, that can change on a weekly or monthly basis depending on what is reported by your creditors.

The good news about the entire credit reporting process is that every day is a new day. In other words you can't undo any history but you can draw a line in the sand and start improving your credit score at any time. The rating system is based on several factors but many potential creditors review the actual report and don't just go on the credit score.

Keep in mind that credit is used as a sales tool by many companies. They want to sell products and services. These companies use your credit report to judge the risk of granting you credit. That's what the whole credit reporting and record keeping is all about, giving the creditor some historical data to base there decision on whether to grant you credit.

If a potential creditor reviews your credit report and sees that you had a rough patch (slow pay, late pay, or no pay) for a period of time but see an improvement over the last few months or year, they may be willing to work with you. Especially for smaller purchases that have some type of collateral to back up the risk.

You also have the right to make comments on any credit entry or add comments in general to your credit report. So if you had a situation that caused your payment issues like being laid off or unexpected medical expenses you can state that in your credit history. This doesn't remove any negative payment information but it can at least clarify why you had problems with paying your bills on time.

And if you show some positive evidence of change (like starting to make payments on time or making up payments) after that period, it can help demonstrate you are now a better credit risk. And the longer you show this improvement in recent credit history, the better chance you have of being granted new credit. It may take a while for it to actually impact your credit score but that too will improve over time.

It may take up to 6-12 months to start seeing some results but it will be worth the effort in any future credit transactions. Many creditors are more than willing to work with you and state that in your credit report. You may also be able to adjust the terms of your current obligations to enable you to meet the requirements. It never hurts to ask and most creditors just want you to get back on track and start making payments. They don't want to suffer the loss either.

So even if you have a less than stellar credit history you can start today to improve your credit history. Your credit score can impact other areas besides just applying for credit purchases. Many utilities (gas, electric, and water) use your credit history and score to decide if or how much of a deposit you need to make when signing up for service. Insurance companies often use credit scores as a factor when determining your insurance cost. When applying for certain jobs, your credit score may also be reviewed.

There's really no reason not to pursue good credit. And you can start today and start seeing results in just a few months. Credit reporting is not going away and if credit is used wisely it can be a great tool. And having a good credit score can save you money too.

Article Source: http://www.yournetadvisor.com

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