Your credit report contains lots of information about you. It contains your name, date of birth, address, employer, where you have applied for credit and who you have credit with. Your credit report indicates your past and current payment habits and how you manage accounts with your creditors.
Those who have had problems with credit in the past can have a difficult time getting re-established. When looking to re-establish credit, it’s important to only obtain credit from places that report to the credit report.
Believe it or not payments made on time to utility providers like your phone and cable don’t report to your credit, nor do accounts with gyms and other service providers. The only time these accounts can impact your credit, is if you don’t pay them and then they send it to a collection agency. There is a special place on the credit report where collection agencies can report money that they are collecting on behalf of a private third party company, creditor or service provider.
Payday loans and pre-paid master cards also do not report to the credit report. Many consumers fall into the payday loan trap thinking that they are re-establishing credit. This can be an expensive lesson.
Secured credit cards, secured and unsecured loans do report to your credit report. Companies like Capital One and Home Trust offer secured credit cards. Companies like Prudent Financial Services offer personal loans to consumers who have filed for bankruptcy, have completed consumer proposals or who have past, paid off bad credit.
When new loans and credit cards begin to report to your credit report, it will immediately begin to improve your credit score with each on-time payment. Remember to pace yourself. Start with one credit product, manage it for 6 months and then try a second one. Too many inquiries or applications for credit will hurt the credit score that you are working so hard to build.
For more valuable information and tips, visit us at www.prudentcreditrepair.ca
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