When it comes to your credit rating there are many things that go into deciding what type of rating you deserve and what your FICO score really is. There are three agencies that you can get your credit report from and they can all have different information for you. This can be confusing and can be very strange for many people. You need to understand what it takes to get great credit and to maintain great credit. Here are some credit report tips that you need to know and use in order to get the credit rating you want and deserve.

First, you should understand that if you are shopping for anything that requires financing you need to be very careful about how many times your credit report is dropped. If you were to go shopping for a car and you let 3 or more dealerships pull your credit, then your score can drop a little bit. This gets even worse if you have others places pulling your credit as well. The more inquiries you have in a 90 day period the more it will effect your score. This is not good and you need to be very careful about how many places you allow to pull your credit report when you are looking for any type of financing.

Second, one of the best credit report tips you can ever get has to do with how to build your credit once you have bad credit or anything on the bad side of the report. Your credit score is not effected as much by the sizes of the debts on the delinquent side of the report, but instead it is more effected by the number of debts you have on that side. This means if you have 10 debts over there and you can pay off a few of them, then you can increase your credit score. This is a very good way to go and if you can pay off some of the smaller debts while working on the larger ones, then you can start to move your credit score in the right direction. Out of all the credit report tips you can find this might be the best one out there.

Last, you should also know that having things that you pay on time on your credit report helps a lot as well. This really is true with credit cards. Another thing to know about the credit cards is that if you keep your balance at less than 25% of your credit limit it is good for your credit. If you keep a balance that is higher than 25% of your credit limit, then it will effect your credit in a negative way even if you always pay your bill on time. This means that you should be very careful about the credit cards you use and how much you use them.

Source by Jared McDermott