Bad credit can keep you from owning a home, buying a new car and even getting a job. However, bad credit can easily be avoided if you know what actions negatively affect your credit score.
Paying Bills Late
If you notoriously make your credit card, loan and mortgage payments long after their due dates, your credit score will be much lower than if you made your payments on time.
Maxing Out Your Credit Cards
If you owe more than 80 percent of your available credit, you will have a lower credit score than if you keep your debts below 25 percent of your available credit.
Initiating Credit Inquiries
A credit inquiry is listed on your credit report every time you apply for a credit card or loan. Applying for multiple credit cards in a short period of time will negatively affect your credit score.
Collections and Public Records
Collections for bills you didn't pay as well as tax liens, judgments and bankruptcies will all appear on your credit report and bring down your credit score.
Short Credit History
If your credit accounts haven't been open long, you will have a credit score that is lower than someone with long-standing credit accounts. For this reason, it may be beneficial to keep old credit accounts open even if you're not actively using them.
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