Ever noticed that in life it is often tempting to take something for granted (e.g. a clean credit report) only to realize its true value once it's gone? Fewer people appreciate a clean credit report more than those who do not have a one. Even though the ideal is for everyone to be able to operate on a cash and savings basis exclusively, the fact is for most people having access to credit is an important way of building wealth and growing their assets. A mortgage is a case in point. The good news is that having a good credit record is not impossible and in fact only requires the dedication and discipline to adhere to the following simple steps:

1. Address Credit Card debt first - Even though you may have a mortgage and a car loan as well, the credit card carries significantly more weight on your credit score. Your goal must always be to be as far below your card limit as is practically possible. If you keep a large amount of headroom (the difference between your credit limit and your card's balance) on your card, this is often perceived by lenders as evidence of your ability to repay ie it demonstrates self-restraint on your part which is part and parcel of repaying a loan. If you have already amassed a significant amount of credit card debt and it is bordering on or beyond your card limit, then start your debt riddance strategy by reducing the outstanding amount on such cards as quickly as possible.

2. Use your credit cards sparingly - Convenience: The very advantage that a credit card provides is probably also the biggest pitfall that it presents. Do not pay for any product or service using your credit card simply because it is well within your card limits. A good approach to maintaining a clean credit report is assigning a particular expenditure role to each card you have e.g. one card may be for utility bills only, and then make sure you set and stick to your budgeted expenditure.

3. Check your credit report for the accuracy of its input data - Yes, mistakes on the input data used when generating credit scores do happen. The responsibility to identify and correct these errors rests with you as you are the primary interested party. Your card issuer could be sending the wrong data as far as your limits go and thereby creating the impression that you are continuously maxing or overshooting your card limits. Use a Credit Repair software package to guide you through the process of sighting, disputing and getting your credit report corrected.

4. Do not cancel credit cards you've had for a long time - If you have had a 'near miss' with a certain credit card where you at some point struggled to make payment but eventually did, there may be a strong urge to issue instructions to the issuer to cancel the card. On the surface, this looks good. However, this is not something you should consider doing if you have had the card a long time. Credit history is an important part of a clean credit report and long held cards that you regularly pay off and continue in use even for very small transactions lend weight to your credit score.

5. Use social capital with your credit card issuer - Everybody has a bad day once in a while and even a person that has had a stellar record of card balance repayment for many years can be inadvertently caught up in a one off circumstance that makes them struggle in their repayment. Your prior clean performance is leverage you can use to persuade your card issuer to leave that one bad tiny spot in your history off the record. Of course this is something you can only do once so as to retain any level of credibility with your bank.

These steps will get you closer to a clean credit report by helping you raise your credit score and eliminate any mistakes on your credit record.