When evaluating this section, find out if you see any clues about how your company uses credit, and find out whether your company' has a number of assets put up as collateral on existing loans, or if your business has a large number of relationships with other business, to determine whether your business may be overextended. Here are the five basic elements of a credit report. What s A Credit Report, And Where Does It Come From? A credit report essentially is an official record of a person s credit activities. In a credit report, all credit card accounts and loans are listed, as well as any loan balance, and how regularly you make or miss your payments. Avoid signing-up for the various credit card offerings you receive in the mail, as well as from the department store or mall clerks who want you to sign up for store discount cards. Remember to only apply for credit that you really need, and can afford to pay. For example, while a home mortgage is an essential expense, an expensive weekend boating trip, or a costly car accessory is surely not a sound expense. Co-signing also means that the individual you were co-sign for was not able to get the loan without your signature. Always be wary of co-signing a loan, especially if you cannot guarantee that the person will be able to pay his or her payments on time. Continually Keep Your Accounts Active Most creditors and lending agencies would rather prefer to see a verifiable credit history on their clients. Always make it a habit to pay on time, and according to most credit experts, paying your bills on time does wonders in getting a handsome credit score. While most creditors won t report late payments made at 30 days, once it reaches 60 to 90 days, a borrower will certainly get reported. If you ve made late payments before, relax and don t worry, since over time those infractions will slowly diminish, and you ll get back your old credit score. Because you ve settled with your former creditor for an amount less than what you actually owe them, the creditor eventually reports the remaining balance which you weren t able to pay, to the credit reporting agencies, and this will get noted in your credit report as a deficiency balance . If you have debts with former creditors, make sure that you work out a full settlement with them, and guarantee that what s accomplished between you and your creditor does not get reported elsewhere.