Five Common Mistakes that will Hurt Your Credit Score
Did you know that your credit score is inspected by more than just lenders?
When you apply for a job, purchase insurance or try renting a property, your credit report will most likely be pulled. It’s used for things you don’t even think about, so you certainly want to make sure you keep your score up.” Here are some of the more common credit mistakes consumers make:
Racking Up Large Credit Card Bills-
Even if you pay them off, when you have large balances on your credit card, it takes away your capacity (how much credit you have at your disposal versus how much credit you are using). The more credit you have available, the better off you are.
Missing One Payment-
A single delinquency can cost a previously stellar credit score to fall more than 100 points. Missing a single payment can be very hurtful, whether it’s a $5 credit card payment or a $1,000 mortgage payment, being late one time, no matter the payment size, will equally hurt your credit.
Opening Too Many Accounts at Once-
It’s OK to open a new credit card here and there, but don’t go overboard. Each application and subsequent credit pull generates an inquiry that appears on your credit report, which can negatively affect your score.
Not Checking Your Credit Report-
Take advantage of www.annualcreditreport.com, which allows you to request a free credit report once every 12 months from each of the three credit reporting bureaus. You should have an inkling of where your credit stands, and know whether there are mistakes or other issues that need to be fixed. Don’t walk into a situation where you’re applying for something and won’t get approved. The problem may be an error that you can get fixed, but it would be better to know ahead of time.