Financially secure people tend to share a common trait. Most, if not all, know how to get ahold of their credit report, and what to do with it. Negative information in your history can have far reaching effects. It’s important to know the ins and outs of your report and how to protect your score.

Every year, you are entitled to a free history provided by the three major bureaus. It is not simpler to access this information through a third party, like a service offering a free report. Typically, those businesses also require you to accept use of a monthly service that will end up costing a subscription fee.

Late payments are detrimental to your score, usually after one month after they are owed. A day or two might not matter, it largely depends on how quickly a company wishes to report delinquency to the bureau. A low score may be due to payments being made too late. So make sure that if you aren’t going to be paying on time, you’ll be as close to it as possible. It’s important to keep positive accounts in good standing.

Open accounts that are in good standing help improve your debt to credit ratio. This ratio makes up slightly less than a third of your score. Without some existing debt, you may hear that you do not have any history. While that is better than having a bad rating, it can still mean higher interest rates. Old accounts speak volumes about your ability to be financially responsible, and closing accounts that are not used can actually be a bad choice in terms of strategy.

Too many marks on your score is a red flag to anyone who looks at it. These marks can come from bad decision making, or slightly more surprising places. For example, it may surprise you to hear that applying for a loan or new card can put a mark on your report for at least a year. Too many in too short a time tells people you’re not financially responsible. That may not be true at all, but you must do what you can to give the right impression.

Families can work together to create financial stability and learn to contribute to a positive report. Perhaps a secured card would help a teenager learn proper use, and also the work that can go into paying off debt, without risking financial damage. When they become an adult, they will need this knowledge as well as some kind of history to present if they need a new car or apartment, so starting early is key.

Your credit report can be checked when you apply for a new loan, a new job, or a new apartment. Never stretch the truth or lie about anything related to your credit history. It is too easy for a third party to piece together information and expose your untruth. There may be federal penalties for dishonesty, and it is better to be clear about your financial mistakes than attempt to hide them.sons, in order to give their child more freedom and responsibility.

Find details about how to get a free credit report and information about an online personal financial management platform, now.