by William Bond

Created on: June 02, 2010   Last Updated: June 03, 2010

Your good credit is essential to be able to get credit when you need it, such as: a mortgage, refinance a mortgage, car loan, credit card and other loans.  It can come in handy when you need your car repaired quickly so you can get to work, or get stuck in you car on the highway, and you are in need of major work, to get it repaired and running again. 

A good credit reputation gives you a sense of security that is very important in today's quickly changing world.  To establish your sound financial reputation, and credit worthiness means you must earn it by taking some personal financial steps to show your creditors you can pay your obligations on time, and you will take precautions of managing your money successfully.  Here are some tips/skills for developing and managing your credit reputation.

Paying your bills on time is crucial.

People develop an excellent credit reputation by not only paying their monthly bills on time, but they also pay their bills with the correct amount due. The history of all your payments are kept the three major credit bureaus:TransUnion, Experian, and Equifax, and you get a free credit report, each year by contacting them on line. The credit report gives you information on each payment you made on your mortgage, auto loan, credit cards, store cards, personal loans or any other credit institution.

Review your credit report.

Is there any errors on it? If so, jot them down and contact one of the major credit bureaus listed above.  Give them full details on the error, and they have 30 days to give you a proper response, if after 30 days get back to them and ask for their answer.  You are in charge of making sure that these errors are corrected and done in a proper time frame.  An error lest uncorrected may hurt your mortgage application you want to submit to your bank, or opening up a new credit card.  The credit report is the nuts and bolts that develops your credit score.

Your credit score determines what credit offers, and favorable interest rates you get.

The people who get treated well by the banks, credit card companies, and others offering credit, are those that have an excellent credit report, and credit score, and they are not only make regular payments, but avoiding opening up too many accounts, and avoid getting themselves into

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