Some people are a little more conscious of their spending than others are. With so much available credit nowadays, overspending is easier than ever. The way we manage our money will reflect on our credit reports and determine how high our credit score is. But does any of this really matter?

On a daily basis, you may not see too many ill effects of having a bad credit report. However, what will happen when it’s time to make a large investment, such as purchasing your first home? Money lenders often refer to your credit report when deciding whether or not to grant you a loan. They look at how well you pay your bills on time and how much debt you have. A poor credit report could result in you being turned down for the loan.

How can you improve your credit report? Remember it is never too late to work at improving your spending habits. First, request a free copy of your credit report, which you are entitled to once a year – this way, you will be able to see areas you need to improve. Another key step is to pay all of your bills on time. If this is difficult for you, set up automatic payments that cover at least the minimum owed. An added benefit is that you will avoid late payment fees, which will help save you a lot of money.

Finally, do not hold on to a lot of credit cards. Only keep the ones you have had for a long time, which will help lenders see your payment history, and get rid of any you no longer use. Make sure you call the company to cancel them, otherwise, it will still appear like you have the card.