A lot of of the things that can harmfully influence our credit seem to be counterintuitive. There are things that we do that we think to be valuable for our own capital and budget and yet these things can make our credit score go down.
Let me show you an example, if you are not using a credit card you might think it would be a nice thought to go ahead and close the account. But if you do that it will negatively affect your credit score. Much of your score is based upon the existing credit that you have compared to how much you are using. If you close the account then that amount is no longer accessible to you and your debt to credit ratio goes down, harmfully affecting your credit score.
Something else that is about the same is owning a credit card but not using it. Common sense tells you that if you don't use it, it can't harm you. However, a vendor can and will terminate a credit line that is not used and then again you no longer have the on hand credit.
An added way to hurt your credit score is to use too much credit even if you pay it off every month. If your running balance is high during the month it affects you more than the fact that you pay it off every month. Try not to ever surpass more than 30% or your offered credit on one credit line regardless of if you pay it off consistently or not.
A parking ticket or a library find can show as a negative on your credit if you pay no attention to it for too long. An unpaid bill such as a cell phone bill or a gas bill can do the same thing. If the bill is referred to a collection agency it is likely that it will show up on your credit report.
Did you know applying for too much credit can be a problem? Any inquiry into your credit will show as a damaging mark against you. Also revolving credit accounts are counted as more negative than other types of credit. So the next time a department store offers you 20% off for applying for their credit card, recall this and say "Thanks, but No thanks".
You would be shrewd to check your credit report on a regular basis. It has been reported that as many as 75% of all reports contain mistakes and inaccuracies. If you check your report often you can dispute the issues without delay and you won't have a trouble when you do need credit. You are entitled to one free report each year from all three of the major credit bureaus. You should take benefit of that and make sure that your credit report is truthful and accurate.
The correct way to retain your good credit is to avoid any troubles in the first place. Even so, you may still sporadically find mistakes on your report. You can dispute them to repair your credit with the help of a professional credit repair service or you can do it on your own. - 29866
Let me show you an example, if you are not using a credit card you might think it would be a nice thought to go ahead and close the account. But if you do that it will negatively affect your credit score. Much of your score is based upon the existing credit that you have compared to how much you are using. If you close the account then that amount is no longer accessible to you and your debt to credit ratio goes down, harmfully affecting your credit score.
Something else that is about the same is owning a credit card but not using it. Common sense tells you that if you don't use it, it can't harm you. However, a vendor can and will terminate a credit line that is not used and then again you no longer have the on hand credit.
An added way to hurt your credit score is to use too much credit even if you pay it off every month. If your running balance is high during the month it affects you more than the fact that you pay it off every month. Try not to ever surpass more than 30% or your offered credit on one credit line regardless of if you pay it off consistently or not.
A parking ticket or a library find can show as a negative on your credit if you pay no attention to it for too long. An unpaid bill such as a cell phone bill or a gas bill can do the same thing. If the bill is referred to a collection agency it is likely that it will show up on your credit report.
Did you know applying for too much credit can be a problem? Any inquiry into your credit will show as a damaging mark against you. Also revolving credit accounts are counted as more negative than other types of credit. So the next time a department store offers you 20% off for applying for their credit card, recall this and say "Thanks, but No thanks".
You would be shrewd to check your credit report on a regular basis. It has been reported that as many as 75% of all reports contain mistakes and inaccuracies. If you check your report often you can dispute the issues without delay and you won't have a trouble when you do need credit. You are entitled to one free report each year from all three of the major credit bureaus. You should take benefit of that and make sure that your credit report is truthful and accurate.
The correct way to retain your good credit is to avoid any troubles in the first place. Even so, you may still sporadically find mistakes on your report. You can dispute them to repair your credit with the help of a professional credit repair service or you can do it on your own. - 29866
About the Author:
Repairing your credit may well become essential at some point. If you need further information about my credit repair visit http://724Credit.com and don't forget to sign up for a free credit repair course.
