In the last post I talked about my ignorance regarding my credit report. In fact I had never given my credit report a bit of thought until I was forced to face it after being denied for a mortgage loan. That was when I knew that I had to deal with my finances once and for all. I ordered free credit reports from each of the three credit bureaus – something that I have continued to do every twelve months as is allowable by law. Each of the free credit reports from each bureau gives me insight into what my financial standing looks like to potential lenders and keeps me abreast of changes to my credit score and information that could potentially be linked to identity theft should it occur.

In addition to ordering free credit reports I also began checking out secured credit cards as a way to manage my financial comeback. Secured credit cards offer a credit limit to users but the amount of the credit limit must first be deposited into a secured savings account. This protects the lender from the possibility of the cardholder defaulting on their loan. But secured credit cards also protect the cardholder from getting in over their head with a huge credit limit that they can’t pay.

I finally found a credit card that worked for me and I have been using it ever since; only buying things that I need and keeping the balance low and manageable, and making on-time payments every month. My secured credit card is just one stage in my financial reform and a way that I have been rebuilding my credit piece by piece. One thing is for sure – when I go to get a mortgage the next time around I will have a very clear understanding of my credit report.

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