Don’t wait for the time when you’ll be denied of a loan or credit. Look into your credit report to avoid inaccurate or missing information in your credit report. It is important to check credit report to avoid raising your borrowing costs or even experience delays in making a major purchase. Here’s a list of the things that can lower your credit score.
- Acquiring too many credit cards
Though acquiring many credit cards has certain advantages, credit cards is still a type of unsecured debt. Having access to all of them may reflect to potential creditors as an incapability to repay a new obligation. However, having only one credit card that also happens to be maxed out is incredibly damaging to your credit score. Having only one credit card that also has a very low balance relative to the credit limit is very helpful to your credit score.
- Not paying your bills on time
Not only will you piled up debt or a bad credit score. Sometimes, not paying your bills on time can cause cancellation of your card. You must consider paying bills as one of your important obligations for your past payment history is one of the biggest factors that affect your credit score. Once or twice late payment may not particularly cause damage to your record but making a habit of it will surely count against you.
- Not paying the required minimum amount
Creditors will eventually report your account as past due, if you happen to not pay the minimum amount due. Also, not paying the required minimum amount will cause you late fees or even additional interest charges. Better pay the required minimum amount to avoid a bad record when you check credit report.
- Not paying attention to your debt levels
Owing a lot of money on your credit cards can hinder you of an approval for potential creditors. Creditors also use this information to evaluate loan approval or interest rate charges (higher interest rates are used to compensate for higher risk).
- Not updating creditors of change of address or change of names
Failing to notify your creditors that you’ve changed address can bring you the risk of not receiving bills on time and result to late payments with additional charges. Meanwhile, failure to update them with a name change can result in your credit report not accurately reflecting the credit you’ve worked to build. Check credit score regularly and don’t fail in updating them with these kinds of changes.