• Employers – Your education or ability to do your job may not be the only thing an employer is looking for. In fact, many employers have begun performing credit checks on candidates. They may want to know if you are in debt, if you have any outstanding judgments against you, and if you are able to handle your finances well. And a credit report may be able to answer all of their questions. Because new jobs are harder to come by in today’s economy, employers have begun using interesting methods to narrow down the list of potential candidates, and they may very well use your credit report to do just that.
• Landlords – A home loan isn’t the only time you can expect your credit report to be pulled. Most landlords, in fact, will look at your credit report during the application phase. Landlords must protect themselves from renters who don’t pay their rent, so it is often a smart move to check a potential renter’s credit report.
• Insurer – What many people don’t realize is that their insurance rates are often dependent upon their credit score. From homeowner’s insurance and auto insurance to even renters insurance, rates can vary widely based on an individual’s credit score. In other words, you may be paying much more in insurance rates than someone the same age as you and in the same circumstance as you, simply because your credit score is lower.
• Cell phone carriers – Before you sign an agreement with a cell phone carrier, your credit score will likely be checked. If you don’t have good credit, you could be turned down for a cell phone plan. You may also be unable to qualify for the best plan rates or even pay a deposit.

Your credit report is more than just a number. In other words, it is important to identify and view a number of things on your credit report so you can be sure you are doing everything you can to ensure a strong credit score.

If you want to be sure your credit report stands up to scrutiny, here’s what to look for:

• Late payments – Any lender or creditor can (and often do) report your late or missed payments to the credit reporting bureaus. And every time one of these reports is made by a creditor, your credit score takes a hit. In fact, by most standards, it appears that late payments can lower your FICO score by as much as 35 percent. It is also important to understand that not all late payments are created equal in the eyes of the credit reporting agencies, so the longer you take to pay and the frequency at which you fail to pay on time will adversely affect your credit score.
• Amount of credit – Although the key to a strong credit score relies on taking on credit, too much credit is never a good thing. Called a debt-to-credit limit ratio, the amount of debt you have in relation to the amount of available credit you have can either help or hurt you in the eyes of creditors and the credit reporting agencies. In short, keep your debt to a minimum so you can be sure creditors will not see you as a credit risk.
• Judgments, Bankruptcies and Liens – Although your credit past plays a big role in your credit report, so do any bankruptcies, liens and judgments.  In other words, any public record against you will likely appear in your credit report, which may negatively affect it.
• Closed accounts – A closed account will have a negative effect on your credit score, at least for a short period of time. This is because your debt-to-available credit will be lowered upon closing an account. If you feel you must close an account, by all means do it; otherwise, avoid closing accounts, especially in the months preceding a loan application.

Here’s what you need to know:

• Every time you seek credit, the lender will look at your credit report. Simply put, there is no way to get around a poor credit score because lenders use this information to make a determination about your credit worthiness.
• All of the three, major credit bureaus in the United States track your borrowing behavior. Experian, Equifax and TransUnion all keep detailed records of your borrowing history. So, every time you are loaned money, the details of that loan will be present on your credit report. It will detail the amount of the original, the current balance of the loan, and the payment history on the loan.
• Your credit report includes a plethora of financial and personal information, including your account history, your balance, your monthly payment, your payment history, your payment status, information from public records, tax liens, monetary judgments and even overdue child support payments. So anytime a lender or creditor pulls your credit report, he or she is essentially getting a snapshot of your life.
• Not all credit report information is accurate, and mistakes found on your report can cost you big. The three credit reporting bureaus are not immune to mistakes or inaccuracies. As such, you could have inaccurate information appear on your credit report; information that could ruin your chances of obtaining credit. Because of this, it is vital that you periodically check your credit report for inaccuracies or other errors. If any inaccurate information is found, it is up to you to immediately contact the appropriate credit reporting bureau.
• The Fair Credit Reporting Act entitles everyone to receive a free copy of their credit report once every 12 months. You are also entitled to a free copy of your credit report if you were denied credit for any reason.

• Library fines – Some libraries will send your overdue fines to the credit reporting agencies. Surprised? Because these types of fines are most commonly ignored or forgotten, municipalities have gotten smart and started reporting individuals to the credit reporting agencies.
• Parking/speeding fines – Municipalities are also getting into the game when it comes to parking and speeding tickets. In fact, it is becoming quite common for municipalities to report these unpaid fines directly to the credit bureaus. As a result, many individuals take these fines much more seriously.
• Cell phone bills – Although the regularity at which cell phone companies report missed payments to the credit agencies depends on the service provider, it is true that many cell phone providers have begun forwarding this type of information onto the credit reporting bureaus. Many cell phone providers report unpaid cell phone payments as credit accounts, thereby immediately affecting your credit score.
• Child support – The Fair Credit Reporting Act treats child support like any other type of debt. As a result, courts furnish child support payments – whether on time or delinquent – to the credit reporting agencies. However, it is important to note that, although child support payments are recorded on credit reports, they do not affect an individual’s FICO score. Keep in mind, though, that an employer may look down upon someone who shows delinquent child support payments on their credit report.
• Utility payments – If you fail to pay your electric bill or your water bill, expect the company to furnish this information to the credit reporting agencies. Although a missed payment or two will not likely get reported, if you are consistently past due, you may find this information on your credit report. In short, it is important to treat all bills – not just loans and credit cards – equally because they may all play an important role on your FICO score.

Because of the importance of a strong credit score, it is vital that you order a copy of your credit report, from all three credit reporting agencies, at least once a year so you can thoroughly review your credit report. If you find any inaccuracies or omissions, it is important to immediately contact the appropriate credit reporting agency.

Here’s how to do it:

• As soon as you spot an error, contact the appropriate credit reporting agency and submit a dispute. Provide the credit bureau with an explanation, in writing, of what you believe is inaccurate information. Any information you can provide the bureau with, such as credit card statements, to support your claim, will be helpful. Don’t send originals, though; make copies and keep the originals. Send your letter through certified mail and ask for a return receipt. Before you send any information, make copies of everything, including the letter, for your records.
• Under the Fair Credit Reporting Act, the credit bureau must investigate your dispute within 30 days. If they are unable to verify the information contained in the report, they must remove it from your credit report.
• Once the investigation has been completed, the credit bureau in question must then provide you, in writing, with the results of their investigation, along with another copy of your credit report showing the updated information.
• If you request it, the credit bureau must also provide an updated credit report to anyone who received your credit report in the last, six months. In addition, if an employer requested a copy of your credit report in the last, two years, you can request that the bureau send them a copy, as well.
• If you are unable to resolve a dispute with the appropriate credit bureau, you can still request that the bureau include the copy of the dispute in all future credit reports.

Well, unfortunately, the answer is not that simple. For starters, credit card spending is a problem for just a small percentage of the population. If you have difficulty controlling reckless spending then a credit card probably isn’t right for you. However, for the rest of us, credit cards serve an important purpose and, let’s face it: they can provide us with an incredible amount of convenience and financial flexibility. Here’s why:

1. Credit cards make a bulk of our credit report – Credit cards are the easiest way to establish a long credit history. They are often the way to build our credit scores so we can be approved for cars, homes and other large items. If we eliminate credit cards from our lives, our credit scores may take a hit. Responsibly using and paying on a credit card throughout the year is one of the most effective ways to build an impressive credit score.
2. Credit cards provide us with convenience and practicality – Credit cards allow us to spend with a grace period. They allow us to spend now and pay later, making budgeting much easier. They allow us to cover emergency expenses and cover unexpected expenses. In short, a credit card, for many people, is like a financial security blanket.
3. Credit cards have an advantage over cash – Credit cards can do much more than cash. They can help us track our expenses; they can help us budget; they can help us run our business; they can provide us with protection against theft; and they can offer us many features, such as travel insurance and rental insurance. They eliminate the need to use cash when traveling, and they are accepted virtually anywhere. Renting a car, purchasing airline tickets and booking a hotel can be done quickly and easily with a credit card.

You may think that your credit score is picture-perfect; after all, you have a few credit cards and you manage to pay on them every month. So, what’s the problem? The truth is that there may be things you aren’t doing that are putting a dent in your credit score:

1. You aren’t using your credit card – Many of us think that because we have a credit card we automatically have good credit, but this just isn’t true. An open credit card is a good first step, but in order to establish a solid credit history (and therefore bump up your credit score) you must spend on the card regularly. What many people don’t know is that simply making a purchase or two each month is enough to begin building a strong credit score.
2. You aren’t looking at your credit report – What you don’t know may hurt you, especially when it comes to your credit report. Any credit report could have a number of errors or discrepancies that can damage the best credit score. It is therefore important that you make a point of ordering a copy of your credit report at least once a year so you can review it carefully and check for any errors. Of course, if you spot anything that doesn’t look right, it is important to immediately contact the appropriate credit reporting agency and submit a request for an investigation.
3. You aren’t paying attention to your credit card’s due date – The only way to ensure a strong credit score is by paying your credit card on time, each and every month. Many people think that failing to pay their card on time every once and a while won’t harm their credit score, but the truth is that even one missed payment can put a dent in your credit score and open up the possibility of your credit card company raising your interest rate.
4. You aren’t paying down your credit card balance – Paying the minimum balance just doesn’t cut it when it comes to building a strong credit score. The credit reporting agencies see large credit card balances for extended periods as a red flag, as it often indicates you are spending beyond your means. Keep your spending in check and pay those credit card balances down every chance you get.

After licking your wounds, there are a number of things you can and should do following a credit card rejection:

• Even if you applied online or via phone for a credit card, you will receive a written notice in the mail regarding your rejection. It is important to read this letter so you can gain some insight regarding your reason for rejection. If the letter does not give you the answers you are looking for, you should contact the credit card company directly and ask them for a more detailed explanation. After all, you cannot change or improve things if you don’t know what to change.
• You are entitled to a free copy of your credit report once a year; and again if you are rejected for a credit card offer. It is very important to take them up on a free copy of your credit report, particularly if you don’t understand why you were rejected. After you receive your free credit report, carefully examine it for any unknown charges, errors or discrepancies, and immediately report them to the appropriate credit reporting agency.
• Take the information you gleaned from your credit report to better your credit score. Although it stings to be rejected for a credit card, the best thing you can do is work hard to improve your credit score. Often times, simply by paying your bills on time and curbing your credit card debt for a period of as little as six months, you can raise your credit score high enough to be approved for a credit card.
• If you still want the many conveniences of having a credit card, but your credit is not strong enough to qualify for an unsecured credit card, consider applying for a secured credit card. A secured credit card, because it requires a cash deposit typically equal to your credit limit, allows individuals to be approved for one even if their credit score isn’t great. Plus, a secured credit card can help you begin building a strong credit history and improve your credit score.

Their excuse: they didn’t receive their credit card statement in the mail.

Sorry, but that excuse just won’t cut it in the eyes of your creditor.

Creditors don’t want to hear about lost credit card statements, payments that may have gotten lost in the mail, or nearly any other excuse (real or otherwise) that you may throw their way. You may have some leeway with your creditor the first time this happens, but don’t expect your creditor to be a sympathetic ear to your financial blunders. Take matters into your own hands and make sure the bills get paid.

Because of this, it is important to understand and take care of your monthly debt obligations. Here’s what you can do:

• Make a spreadsheet or other document that clearly marks all debts that require monthly payments, including the mailing address for the creditor, your account number and the due date each month. A spreadsheet will allow you to reference your monthly obligations, thereby ensuring you won’t overlook a payment.
• Set up electronic statements and forgo the paper statement. An electronic statement notification will be delivered, via your email, each month, and your statement will be available online and accessible using a username and password. The email notification may be just what you need to remind you of an upcoming credit card bill.
• Set up automatic payments, if desired. Automatic payments allow you to pay your credit card bill each and every month, at the same time, without a thought from you. If you have trouble remembering to pay your credit card bill (or any other bill, for that matter), automatic payments are definitely the way to go.

If so, then maybe it’s time to go back to basics with your finances. Here’s how:

• Make a budget – Not many of us think to create a budget, but this simple act can make a huge difference in how you spend and save your income. Just by making a budget you can better understand where you’re spending your money and why you are unable to make ends meet.
• Make changes in your spending – After you’ve made a realistic budget, you can begin going back to basics by making cuts to your spending. That latte every morning at your local coffee shop could be costing you big and cutting it out could allow you to put an extra $100 on your credit card each month. Remember: small changes can (and do!) make a big difference in your household budget.
• Order a copy of your credit report – One of the best ways to clear up your finances and your credit is to order a copy of your credit report from all three credit reporting agencies. Knowledge is your best friend when it comes to your finances, so correct any errors or discrepancies on your credit report and find ways to improve your credit score.
• Consolidate your credit cards – A great way to scale back when it comes to your finances is to move all debts onto one credit card with a competitive interest rate and an attractive promotional balance transfer offer. But don’t undo all the good you did by transferring balances; put those other credit cards away and make a commitment to stop spending on them while you pay off your balance transfer.
• Find one, great credit card and stick with it – Instead of using retail credit cards with high interest rates and carrying around multiple credit cards, which are often hard to keep track of when it comes time to pay bills, shop around for a good credit card with features that best fit your lifestyle and spending habits.