-
Seven Ways To Damage Your Credit Score ( part 2 )
- Run up high balances
If using too little credit sends up red flags to lenders, using too much credit sends up road
flares and fireworks.
Loading up on high-interest credit cards isn’t a good idea even if the
reward programs are attractive. Lenders want to see people use credit just right -- not too
much, not too little.
It can be damaging to cardholders who run up a high balance every month on one card and
then pay it off each month. Scoring systems do not take those payments into account.
Restrict the amount and sources of your credit. Remember, credit is about a convenient
payment method, so make sure it fits your needs. It should never be used as money you
don’t have.- Apply for new credit repeatedly
lower credit score -- at least in the short run. Multiple hard inquiries in a short period of
time can raise lenders' eyebrows and most banks or credit card companies try to avoid
consumers in these scenarios. Applying for too much credit over a short period of time can
affect your credit rating, so limit the number of credit applications.- Don't pay fines on non-credit-card bills
and bite you if you decide not to pay as agreed. A lot of service providers don't report
positive information. But the minute you do something wrong, they can outsource that debt
to a collection agency who will report it.
Even if you never go over the limit on your credit card, being one day late on a bill can
affect your credit rating. By the way, experts recommend not spending more than 35 per
cent of your allowable credit limit.- Ignore mistakes on your report
your credit report. In order to dispute something on a credit report, one must, of course,
check one's credit report. It's easier than it's ever been as consumers have unfettered
access to their own credit information.
Unlike other issues that affect credit scores, mistakes sometimes can be remedied easily
and quickly, so it's worthwhile to keep tabs on your report. By law, credit reporting agencies
must provide your Consumer Disclosure report, which differs from the credit report lenders
use, if ordered via mail or fax.- Make late payments or skip them entirely
altogether are stellar ways to ensure that your credit score will scrape the bottom of the
barrel.
If you experience cash flow problems or a downfall in your family economic situation for
some time, don’t hide, it’s the worst thing you can do. Instead, call organizations that have
loaned you money. Explain the situation and tell them you want to work out a repayment
plan. Remember, always pay something.
The further back in time the mistakes are, the less impact they have on your credit score.
Obviously, the fewer mistakes consumers make the better for their score.
We hope this information will prove helpful; should you have any further
questions, do not hesitate to call your Mortgage Specialist; he will be happy to
help you. And remember, you always play safer when you build savings; this is,
without a doubt, the best way to have a good night’s sleep.
Subscribe to:
Post Comments (Atom)
as I can see, credit score is moving all the time- up and down- as everyone as trying to figure out