Posted by Art Of Legend India [dot] Com On 10:33 PM
Summary: In this day and age, having a good credit score is very important. When you have a good credit score, you have a much better chance of getting a loan for a hous.
In this day and age, having a good credit score is very important. When you have a good credit score, you have a much better chance of getting a loan for a house or car, renting an apartment and getting approved for credit cards. If your credit score is low, you might even have trouble getting a cell phone plan or cable package without paying a high deposit. Here are six things that can lower your credit score.
Even if you rarely use it, you should never close a credit card. When you do, you will lose the amount of available credit on that credit card. Throwing off your credit utilization rate can really lower your credit score. If you recently paid off a credit card and are afraid of getting into debt again, just leave the card at home so that you only use it for emergencies.
If you have not used your credit cards in a very long time, the lenders can close the credit cards because of inactivity. That is why you should try to use each of your credit cards at least once a month to keep them active. For example, you can use your credit card to pay for gas occasionally.
It is surprising but true renting a car can actually hurt your credit score. Several rental car companies will do a hard inquiry on your credit before they allow you to rent a car. Before you decide to rent a car, ask the company if they will pull your credit. If they say yes, go to a different rental company that will not pull your credit.
Do not underestimate the seriousness of just one late payment. Making just one late payment on your credit card can lower your credit score more than you think. That is why you should know exactly when your credit card payments are due and pay them on time every month. If you can’t avoid a late payment, do not be afraid to talk to your lender and explain your situation. If you have been a good customer, the lender might be willing to take the late payment off your credit report.
Requesting a credit limit increase on your credit card might not sound like a big deal, but it actually can hurt your credit score. Before you ask your lender for an increase, find out if it will start a hard or soft inquiry on your credit report.
It might seem trivial, but forgetting to pay a medical co-pay of even $15 or $20 can lower your credit score. That is why you should pay the co-pay for the medical bill as soon as it comes in the mail.
As you can see, even the most minor things can negatively affect your credit score if you are not careful. Make sure to keep up to date on the actions that can negatively affect your credit score.