Manage Your Credit Report

Love it or hate it, you do have a credit report and potential creditors can view it.Credit scores have always been important in the evaluation of contractors applying for bid and performance bonds. Today they are even more important because a number of bonding programs we offer use the personal credit score as a primary basis for the bond approval.Let’s dig into this critical underwriting element, learn about the inner workings and how to manage them.Each credit bureau has reporting relationships with vendors and lenders. They gather payment info from them each month. It is likely that every credit bureau receives information from the issuers of your major retail credit cards (such as department stores and gas cards.)

They may not, however, know all of your creditors. Therefore it is possible that credit bureaus may show different data and credit scores.Regarding amounts owed, the dollar amount may not necessarily lower your score. It is more detrimental if you are using a high percentage of your available credit. This is viewed as a possible indication of financial stress.The type of credit you use is not a major factor in determining your score. However, you should refrain from opening new credit cards unnecessarily. It may also lower your score if you do not have any credit cards. Managing credit card debt responsibly helps raise your score.Applications for new credit can lower your score, especially if you do not have a long credit history. It does not lower your score if you order your own report directly from the credit bureau.

Step one is to order a free copy of your credit report and check it for erroneous information. Mistyped social security numbers and name spelling errors can result in other people’s bad information appearing in your report. This happens more often than you might think.If you do find inaccuracies, write to the credit bureau, provide an explanation and evidence (such as proof that a disputed account was settled) and demand a correction.Your credit score matters for bonding and other purposes. It is worth taking the time to manage, and maximize it.Disclaimer: We are not credit counselors and are not providing financial advice! We are Surety Bond Specialists.If you need a credit counselor, contact one.Steve Golia is an experienced provider of bid and performance bonds for contractors. For more than 30 years he has specialized in solving bond problems for contractors, and helping them when others failed.The experts at Bonding Pros have the underwriting talent and market access you need. This is coupled with spectacular service and great accessibility.