Your Free Annual Credit Report – What Lenders Watch Out For

Written by mrcredit101
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If you've ever applied for a credit card or loan in the past and been rejected, that means your credit score wasn't good enough. Finding money is not so easy as it used to be, in the light of the U.S. financial meltdown and recession. Gone are the days of the subprime loans, which many credit experts believe was what caused the financial crash that started in October 2008. Currently, unless you have a good credit report and a score that meets the lenders' minimum requirements, you're not going to be granted credit. Therefore, you've got to work on your annual credit report and make in appealing to lenders.

There are certain things that lenders keep an eye out for when reviewing credit reports:
1. Late payments. Lenders will turn you down if they see that you're habitually late in making your credit payments, and especially if they see that you were late by 60 or 90 days two or more times in a year.

2. Bankruptcy. This indicates to lenders that you were so hard up you had to file for bankruptcy and therefore may not be able to pay if they lend you more money.

3. Extensive credit inquiries. Too many inquiries on your credit report could be a sign that you're desperately seeking money.

4. Judgments and liens. If a money payment case had to go to court and you were mandated to pay, then it's a bad sign.

5. Charge offs/write-offs. These two words are used interchangeably in financial lingo. This means that you owed a creditor, and because you've been delayed in paying for so long the creditor has classified your account as a bad debt and doesn't expect to be able to collect from you.

6. Bounced checks. A check is like a promissory note. By signing and issuing the check you promise to pay a said amount. When your check bounces, it sends a signal to the lender that you were not really serious in your promise to pay.

7. Paycheck garnishments. When a creditor tries to collect from you, unsuccessfully, he can go to court and have the court order your employer to garnish your paycheck. This is not a good profile of you, because it had to take a court order to make you pay your bill.
All the above will remain on your credit report for a long time, from seven to ten years depending on the case. In some instances, these items stay on your report long after they've passed the time they should be reported, and if you don't review your credit report carefully you may not know it.

Have your checked your annual credit report lately? If not, we suggest that you do so right away. There are many stories about people's credit reports showing the wrong information or information that should no longer be reported.

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