Understanding Bad Credit

There are numerous types of credit report problems (which may or may not be your fault) that would cause a lender to reject your application for a loan.

Among the problems are missing a credit card payment, defaulting on a prior loan, filing for bankruptcy in the past seven years or not paying your taxes.

Other black marks on a credit report include a judgment filed against you or any collection activity. If you feel that your credit report is wrong, experts say it's best to take it up with the organization or company claiming you owe them money. But if you've been late paying your bills, regroup by paying in full and on time for six months to a year to prove to the lender that the late payments were an aberration.

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