Hi guys. It’s that time of year for me again. It’s time for all of us, actually, to check our credit reports. In a dumpy economy, our credit scores are more important than ever. Remember, I always get a free credit report every four months. A free one is allowed every year by the top three credit bureaus, so if you plan it right, you can get one free every four months.

Here are things to focus on this quarter. Keep your average credit limit for your major credit cards, such as Discover, American Express, VISA, or MasterCard, high. This tells lenders that you have enough financial experience, and they will be more likely to see you as a good credit risk. The trend for banks nowadays is to continue to cut your available credit whenever possible. Don’t allow this. Call and argue your way to the top. More often then not, they will keep you at your current limit to keep you as a customer.

Contrary to what many say, you have to have at least two or more open major credit cards, such as Discover, American Express, VISA, or MasterCard, on your credit report. This shows lenders that you are a responsible borrower and they may be more likely to see you as a good credit risk and extend you credit. But keep in mind, that these better be in good standing.

Most importantly these days, make sure your credit file shows no record of any current delinquencies on real estate accounts, such as a mortgage. Having real estate accounts in good standing is viewed positively by lenders.

In addition, make sure your credit report does not contain negative public records, such as a bankruptcy, lien, lawsuit or judgment filed within the last two years. This will have a positive impact on your credit score. Public record items may remain on your credit report for 7 to 15 years, depending on the item.

If you have any questions after reviewing your credit report this quarter, feel free to drop me a comment. I am, by no means, and attorney or qualified to give legal advice, but I am always open to giving my opinion.

Stay tuned and see you in seven! Happy savings!

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