Everyone is aware that not paying your bills on time and things like bankruptcy are bad for your credit. What you may not realize however, is that the three major credit bureaus give different weight to various different kinds of debts and flaws within your credit report.

There are five different things that you should always avoid getting on your credit report, as they can be incredibly damaging and hard to get rid of when you want to repair credit fast.

Foreclosures

If you are unable to make payments on your home, then the bank will more than likely move into the foreclosure process, and attempt to sell your home to someone in the hopes of reclaiming their money. Once this happens, there is nothing you can do, and even if you manage to cut a deal and keep your home, the negative effects of not paying on time can harm your credit score as well. These detrimental processes take seven years to be removed from your credit report, and make it almost impossible to repair credit fast.

Bankruptcies

This is perhaps the single worst thing you could do to your credit. Bankruptcies stay on your credit for ten years, and can likely keep you from getting credit extended to you for any reason. This does seem like a grand idea when you are faced with debt that you can’t pay, but it should be stressed that if you want to repair credit fast, then you should avoid bankruptcies at all costs.

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In today’s financial climate, a good credit score is not a luxury, it’s a necessity.

Your credit score not only affects your ability to buy a home, a car, or a house full of furniture. Now it can even affect your ability to get a job or rent an apartment.

Wise use of your credit card can help you build that score.

If you haven’t had much credit in the past, you’ll probably only qualify for a low line of credit. But don’t worry about that, because you’re not going to use the card for any purpose except that of establishing a solid financial reputation.

You’ll use it sparingly, and you’ll pay the entire balance on the day your statement arrives in the mail. Paying it right away means you won’t forget and risk the chance of a late payment fee - and the accompanying ding on your credit report.

If your paycheck isn’t due to arrive for a few days, go ahead and schedule the payment on line to pay on the last day of the statement period, but do remember to deduct it in your checkbook! You won’t build your credit if you start getting overdrafts on your checking account.

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With fraudulent use of credit cards on the rise, it is worth knowing what your vulnerabilities are in case this happens to you. It is better to be proactive than reactive. So here are the things that you need to know.

Debit card danger. If your debit card is used in a fraudulent manner or stolen, then there is no protection like there is if it were a credit card. This type of fraud is not covered by the same rules and regulations. Unfortunately, you are out the money and there is no ‘fraud use protection’ on the part of the card issuer. This is chiefly because of the kind of account that it is.

Limited liability. If your credit card is used in a fraudulent manner, your liability for that use is low. If the card is used before you report it stolen, you could owe $50. But as long as you do report it promptly, you will probably be able to get the fee waived. Federal law states that you have no liability if your account number is stolen rather than the card itself. An affidavit (court lingo for written letter) from the issuer that confirms the fraud might be required as well from the card holder.
If there is a dispute about a single fraudulent charge, you will have to notify the card issuer within 60 days of receipt of your monthly statement which contains the charge.

Liability for credit card fraud falls on either the credit card company or the merchant and is based on a few rules. If the merchant obtained a signature, then the credit card company bears the responsibility for the charge. If there was no signature because the transaction took place online, then the merchant is usually the one to bear the cost.

Fraud by opening a new account. This one is more difficult to deflect from being your responsibility. The one thing that you must do in order to help confirm the fraud is to file a police report. Then, it can be used as confirmation that you have not committed the act of opening the account yourself. Normally, after that, then the account is removed from your credit report.

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