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Credit history is a matter of great concern for people all over. Whether you want a good insurance quote, a negotiation on your mortgage or any other deal, with things you want to buy or your job, a good credit record is important. If you have never had a credit record because you never used credit cards then you are still in a fix. However you can start out right and avoid financial errors that will put you in trouble with getting things done right.
Your first concern in obtaining any financial funding is of course what your lenders say about you. There are three main bureaus in charge of that which are Trans Union, Experian and Equifax. Every individual can have a look at their credit report annually and these credit reports are what make lenders, insurance personnel and your employers to evaluate a prospective client.
Even if you have not been using credit, there are chances you could end up with a bad credit report. It could lead to declining of a loan or mortgage and in the ensuing report you can check why. It could be that the credit information was mismanaged with that of another persons and an error was made by the credit bureau. The bad credit could also be form a case of identity theft. In both cases, the customer has every right to dispute the claim and clear their name.
When looking for documentation to show your credibility to a lender one key way to establish that is through records of your checking and savings account. As a minor, you can still work on having a clean history and be credit worthy by maintaining your accounts well. You can avail yourself of a credit card only after completing 18 years of age but you can have a regular savings account running to show your good records.
Credit history is determined by two main factors, how much you have left to use on your credit and also how prompt you are in paying what you owe. In case you have multiple cards and different due dates, you can have automated accounts set up to pay the minimum due amounts on time. One missed payment can break the entire track record, which takes 7 years to then repair.
When using your credit card, also take care to not go over the limit on the card. This shows that you are unable to manage your finances and can have adverse effects on the credit card again. It is also important to pay your bills in full rather than keep some pending. Procrastination in the credit world will cost you heavily in getting credit.
In case you still do not have chances of getting a loan, you may be able to obtain one if you have a co-signer. A co-signer allows for you to obtain loans when things still look bleak because of poor credit. Having you as a joint member on a credit card account of a close associate can improve your standing with the credit bureau as well.
