How your credit card can affect your credit rating

Here are 4 ways your credit report can show how good management of your credit card could help improve your credit rating:

 

  1. credit-score-report-history-300x200Check out your credit report before you apply for new credit, as this can give you the best indication of whether or not you’d get accepted, and after that check your credit report on an on-going basis.
  2. Ensure that the information on your credit report is accurate, up-to-date, and reflects your present circumstances, as there may be some discrepancies. Should you find anything that isn’t right, then contact the relevant lenders to get it altered. Watch out too for unfamiliar or suspicious entries there that could indicate identity fraud, and financial associations which are no longer relevant.
  3. On your credit report you can spot if you’d missed some payments on cards or loans you have. Missed or late payments stay on your credit report for at least six years, though you can explain any missed payments by adding a “notice of correction”, which is a statement of up to 200 words. Going forward, remember to stay within the agreed credit limits and always make your repayments on time.
  4. Each new application for credit will probably result in the lender checking your credit report and leaving a credit application search footprint. Too many of these can cause alarm, whether or not you were approved. So space out your credit applications and try to avoid making several applications close together, as lenders could believe that you’re in financial difficulties, or even see it as a sign of fraud.

Finally, the Experian Credit Score is a guide to help you understand your credit report, and how past credit management can impact on future credit applications and for you to monitor your progress as you get your finances in order before you apply.

2 thoughts on “How your credit card can affect your credit rating

  1. jamesrod214

    I think that most people don’t know exactly how their credit card affects other parts of their financial situation. Obviously, it affects your credit rating. It’s nice to know exactly how it gets affected though. Like you say, it’s important that you look at your credit report to see if you’ve missed any payments. That can affect your score.

    Reply
  2. Andre Beluchi

    It’s interesting how your credit card can affect your credit rating. The credit rating is what I would need to focus on now that I bought a one from a commercial banking place. My guess is to probably keep a watch on how much money I’m spending.

    Reply

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