Everything You Need to Know About Negative Credit History

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Before understanding how to repair bad credit, it is important to understand credit history and its significance. Credit history refers to a debtor’s account of timely payments. It is easily accessible to the debtor in the form of a credit report. It is highly significant for all the participants involved in the credit card dealings. Some of the noteworthy services that a credit history provides are:

  • Helps creditors and lenders to trace borrower’s reliability and credibility
  • Enables the borrower to keep a check on his/her expenses and debts
  • Gives an extensive account on all the dealings amongst all the participants involved
  • Provides a clear picture of where the borrower stands
  • Keeps a thorough check on your credit accounts and their current status
  • Informs about the changes in credit utilization ratio

However, a negative credit history can be challenging to deal with. There are ways to identify when your credit history has turned into a negative one. Those pointers are mentioned below.

1. Delayed Payments

If the debtor has failed to pay their debt in time repeatedly, it will become a part of the debtor’s credit history. It has rather adverse effect on the debtor’s credentials because a credit history is viewed by all the creditors, lenders, and mortgage issuers. 

2. Black Marks on Your Credit Report

Black marks appear when you have been rejected for a loan due to bad credit score. The more they are, the worse it is for a debtor’s history.

3. Constant Decline in Credit Score

This usually happens if the debtor was rather reckless with their credit cards. The credit score declines and so does their record. Here is more information on how to boost your credit score

4. Proved Delinquencies

If the debtor has been involved in fraud or any activity of the sort, s/he would have it registered on their credit history. It is always wise to keep a check on such incidents to avoid errors, because this decreases your chances of getting an increase in your credit limit.

Having a negative credit history doesn’t mean your life is over. There are certain steps that you can take to repair your credit score.  

  • Keep a constant check on your credit card report
  • Stay in touch with your creditors, mortgage issuers and data furnishers for any inquires or corrections
  • Try rigorously to improve your credit score
  • Be an efficient debtor by paying all your bills in time
  • Apply for new accounts only when they are inevitable
  • Don’t exceed your credit limits
  • Make sure that you haven’t fallen prey to any credit fraud

For further information on credit history, please visit http://quickcreditrepair.com/

By: 
Sammy

Article Source: http://quickcreditrepair.com/free-credit-reports/everything-you-need-know-about-negative-credit-history-703

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