Instant Credit Report and What Creditors Look For In Your Credit Report

Have you ever wondered how lenders evaluate your credits report? Credit score? Background Check? Learn what creditors, landlords, and employers look for so you can ultimately improve your credit to obtain what you want.
Below are the 7 most crucial aspects creditors are evaluating and tips to improve them.
1.
First one is a no brainer; a favorable point is to have all your accounts current.
Tip: Make all your payments on time.
Just with this, you will rank high amongst the general public.
2.
Keep your debt-to-income ratio under 20%.
Debt-to-income ratio is calculated by obtaining your total monthly debt and dividing it by your gross monthly income.
Tip: Do not over extend yourself.
Keep your expenses low and try not to use your credit for a while if it is over 20% or pay it down.
3.
Having to many credit cards and open lines is not a favorable characteristic.
Available balances on these lines are viewed as negative due to the fact that they can easily turn to future debt.
Tip: Limit the amount of open accounts you have on your report.
4.
One of the worse characteristics to have on your credit is late payments.
Whether you are 30, 60, 90, or 120 days late, your credit score will suffer along with creditors risk analysis skyrocketing.
Tip: Do what it takes; sell some items on the internet, get another job, lower your expenses, but make your payments on time.
The longer it goes pass due, the worse it looks.
If there is a negative comment or incorrect information, dispute the finding with the bureaus.
5.
Too much credit inquires.
Creditors frown upon more the 4 inquires within a year.
Tip: Stop applying for all those department store credit cards because they offer you an additional 20% off your purchase.
Be wise and pull your credit only if needed.
Credit inquires usually disappear after 2 years depending on the nature of the inquiry.
6.
Lenders do not like instability.
Several changes in your physical address and employment are shunned upon by lenders.
Tip: Try to keep the same address even if it requires you to rent a P.
O.
Box or a UPS box.
7.
Last but not least, negative credit history such as bankruptcies and charge-offs may either force a rejection or approval with really high interest rate and fees.
Tip: Depending on the type of bankruptcy or charge off, the negative remark will only exist for 7 - 10 year from the date of the original delinquency.
Credit reports all have 4 general types of data; Personal information, history data, Public records information, and creditor inquiries.