There are many negatively things that affect our credit report and credit scores that seem to be counter intuitive. But must to know that there are also things that we do that we consider to be beneficial for our own finances and budget and yet these things can make to decrease our scores. Still confuse with this statement? well here for example, closing a credit card account. This may seem like a good idea as if the account is closed so for the next you do not have potential problem for debt. However, the problem arises because your score is partially based upon your amount of available credit compared to your amount of debt. If you no longer have the credit card then you no longer have the credit available and consequently, your score gets dinged. Along that same line is owning a credit card but do not use it. Common sense tells you that if you don’t use it, it can’t hurt you. However, a vendor can and will cancel a credit line that is not used and then again you no longer have the available credit.
Another way to hurt your score is to use too much of your available line even if you pay it off every month. If your running balance is high throughout the month it affects you more than the fact that you pay it off every month. Try not to ever exceed more than 30% or your available credit on one credit line regardless of if you pay it off regularly or not.
If you ignore a parking ticket or a library fine it can end up showing up as a negative mark on your report, same thing with overdue bills such as a cell phone or a gas bill.
As soon as you are delinquent and your bill is referred to a collection agency it goes on your report.
Applying for too much credit can be rise a problem. Any inquiry into your credit will show as a negative 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, remember this and say “Thanks, but No thanks”.
It is important for you to check your credit report and score on a regular basis. It is estimated that as many as 75% of all reports contain inaccuracies and inconsistencies. You have the right to dispute anything on your report but if you don’t find out about it until you are denied it may be too late for you. Check your report regularly and get the inaccurate information removed. You are entitled to a free report from each of the credit bureaus one time per year. Take advantage of it.
The easiest way to deal with your credit is to stay on top of it. Be aware of the things that can cause you problems and avoid them. However, you will still likely see a few problems. When you do you can take the actions to repair your credit either on your own or with the assistance of a professional credit repair service that professional and have responsibility.