If you have never taken a good look at your credit report then now is the time to do it. You are entitled by law to one free copy of your credit report annually and you can now obtain it online. If you are a student applying for a credit card, then it is important that you get a good look at your credit report before you actually apply.

It is Up to You to Verify Information on Your Credit Report

This is because, if there are any errors on it you will want to address them prior to the application process. Errors do in fact occur and if erroneous information is reported to the credit agency they will include it. This is because credit agencies don't verify the information that they are given.

Seven Year Time Limit

The first thing to look for is any negative information that has past its time limitation. Negative credit information in general can only stay on your credit report for seven years at the most. If there is any negative information that surpasses the seven year limit then you must notify the agency in writing.

Check All Negative Information Carefully

Then there are the other types of errors that you will want to look for and they can fall into a number of categories. In general these would be any information that is not true or accurate. You must obtain your own documents that repudiate the negative information and make copies of them. Then you will send in these copies along with a written rebuttal of the negative information that is on your credit report to the agency.

Make All of Your Payments On Time or Early

When you apply for a credit card you have to bear a few things in mind. The first thing is that they are a great way to build your credit and they are also a great way to ruin it. If your credit card comes with a small introductory interest rate then you have to make all of your payments on time or it will automatically be boosted up dramatically. Even missing an unrelated payment, such as your car payment will cause your credit card interest rate to shoot up.