Unexpected Ways To Mess Up Your Credit
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Some of the things that can negatively affect your credit are things that you might not have considered before. There are a few shocking things that we do that we wouldn't think would have a negative impact on our credit scores but they do.
For example, if you are not using a credit card you might think it would be a good thought to go ahead and close the account. But if you do that it will harmfully affect your credit score. Much of your score is based upon the obtainable 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.
Along that same line is owning a credit card but not using it. Common sense tells you that if you don't use it, it can't hurt you. However, a vendor can and will annul a credit line that is not used and then again you no longer have the obtainable credit.
An added way to mar your credit score is to use too much credit even if you pay it off every month. If your running balance is high all through the month it affects you more than the fact that you pay it off every month. Try not to ever go beyond more than 30% or your obtainable credit on one credit line despite of if you pay it off on a regular basis or not.
Library fines and parking tickets may seem benign but they can end up on your credit report if you pay no heed to them, the same for late recurring bills such as a cell phone or a utility bill. As soon as a bill is referred for collections it can show on your credit report as a negative.
When you apply for credit a hard inquiry will show on your report. If you have too many inquiries it is a harmful for your score. Revolving credit such as department store cards is also looked upon as more harmful than other types of credit such as a car loan or a mortgage. It is probably not worth the 20% off that they give you on your purchase to apply for their credit card.
You would be shrewd to check your credit report on a normal 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 predicament 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 advantage of that and make sure that your credit report is correct and precise.
Of course, the easiest way to deal with credit issues is not the get them in the first place. Be mindful of the things that can cause you tribulations and circumvent them. However, mistakes happen and you may still see some issues. You can take the actions to repair your credit by hiring a professional credit repair service or you can also do it on your own.
Article Source: Articlelogy.com
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