Impact of Credit Cards on Your Credit Report
Credit Cards And Your Credit Report
In this day in age, credit cards are extremely important and popular. It is estimated that millions of people carry at least one credit card, this does not account for people who carry two or more. Credit cards are readily available, they are available to people with good credit and even people with bad credit. However, the one thing for any credit card holder to remember is that they tend to have a great impact, good or bad, on a person’s credit report.
Your credit report is not only important to creditors, but it should also be important to you as well. This report is used by creditors, such as lenders and bankers, when determining if you are credit worthy for a loan or credit card with their company.
In fact, the credit report is the most important aspect of this process that it can literally make or break the decision. Credit cards are the number one reason why so many people suffer from ugly credit reports and it is important to take steps to avoid these ugly instances.
For the most part, people are responsible with their use of credit cards and do not allow them to get out of control. This allows them to show credit worthiness to creditors and lenders, which allows them to gain more credit and more loans. However, too many accounts open at once could damage your credit without you even knowing it. In fact, if you have too many accounts open at the same time, creditors will be less likely to extend you more credit, with fear that you are over extending yourself and will run into a bad situation when it comes to payment time.
Many people have two or more credit cards and in some cases, this can actually hurt their credit instead of helping. Several credit cards will signify to a lender that you are over extending yourself, giving yourself too much leeway. It is the job of any lender to look at all risks, this includes a scenario where the worst possible event could happen. It is important to understand that your credit report is the pulse of your life.
The information contained on the credit report can literally make or break you. It can decide if you get any credit cards, loans, credit of any type, jobs, or even a place to live. When you have credit cards, remember the impact it has on the credit reports and make sure you use them responsibly. Do not miss payments, do not make late payments, and keep the balance as low as humanly possible.
Missed or late payments can quickly damage your credit report, even if it is just one. This typically is noted on the credit report and other potential lenders will see this. If it becomes a habit, your credit rating will plummet and the negative impact will become noticeable.
Be responsible and safe with credit card use. Make sure you carry not more than one to two cards at any time and keep an eye on their usage. Make your payments on time and you will find your credit report stays safe and sound.
Nick Makaryk
http://www.articlesbase.com/credit-articles/impact-of-credit-cards-on-your-credit-report-103386.html
8 Comments to Impact of Credit Cards on Your Credit Report
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How long do late credit card payments impact your credit report?
I checked my wife’s credit report and she has 3 accounts with late payments from several years ago prior to us being married. One was past due 60 days, one was past due 30 days a few times, and one was past due 120 days. How long will her credit rating be impacted by these accounts? Is it 7 years from the time the account is closed?
After 12 months, their impact is diminished.
After 24 months, their impact will be negligible…so long as she has good credit everywhere else.
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It’s 7 years from the time it happened. All it does is keep her fico score low. If she is never late again, only time can make her FICO go up.
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I just found out you can go into your credit report and dispute hits to your report. If it’s been 7 years and your wife hasn’t been contacted by any collectors then you might be able to get your free credit report http://www.freecreditreport.com and once you get it find those derogatory accounts and dispute their status. I’ve also learned you can delete previous addresses from your report so that just your current address shows. It’s all about stability with creditors so your report showing that you’ve moved around alot is a bad thing. Try it.
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Yes It will be there in your credit report for long time. Its always better dispute with credit bureau.
They have online dispute system where within minutes you can file your dispute and within 30 days your dispute will be addressed.
Try this and let us know
http://www.experian.com
http://www.transunion.com
http://www.equifax.com
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If these are closed accounts, it’s 7-1/2 years from the date of first deficiency. However, the older the item the less impact on the score. If these are still open accounts, 24 months of consistent, on time payments will improve her score. The longer the on time payment history the better the score.
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You can use credit repair agency to fix it – for example this one – http://freecreditreport.sinfree.net – They can clean lots of such bad stuff from your credit report – and do it much faster than yourself, so your credit will go up fast.
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1. Order your credit reports from the 3 bureaus
http://www.equifax.com
http://www.experian.com
http://www.transunion.com
If you’re ordering for the first time, get your score (for a fee) from Equifax as their scoring matters most.
2. Make copies of your report and put the originals in a binder. On the photocopied reports use a highlighter and check for any incorrect, outdate, false, etc…info
3. Download a dispute letter(s) from the credit bureaus website and list anything that is wrong. Mail them to their office(s). They have 30 days to reply.
4. If they will not remove something that is not yours or too old (> 7 years) as them for a debt validation. This may take an additional 30 days.
5. Once the ‘baddies’ come off, take care not to let any of your other accounts fall into that predicament.
6. If you haven’t already make sure your existing accounts are current and paid on time ALWAYS.
7. Get a secured credit card with http://www.capitalone.com or http://www.mastercard.com for like $500-1000 or more if you can and use it sparingly. Charge like $50 on the card each month and pay it in FULL and on TIME. Make sure you do this for a minimum of 6 months so that you estabish a positive repayment history.
8. Problem with just letting them ‘fall off’ is that they may never. You may get sued before that…that’s where you suddenly get a summons to appear in court and a judgment for collection against you.
For the 2 collection items…pay them but get a ‘pay for delete’ from the collectin agency in WRITING…they’ll delete it after you pay and it will help your credit score
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