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Mistakes that Could Hurt Your Credit Score

By Sally Maison
Published: Tuesday, July 6th, 2010

We all commit mistakes sometimes but when it comes to our credits, we can’t. We may not realize but simple mistakes could lead to great damages. If you think that several inquires on your credit report from different companies would not hurt you, then you’re wrong. Several hits on your report obviously mean that you are searching for several loans at once or may have been rejected by others. This is will not do good on your credit score. Be very careful with who checks on your report.

There is a way though on how you can cut down inquiries on your account. Try approaching the lenders that you have already made some research about. The method of researching and then approaching them after will lead to fewer access of your report by lenders at the same time; fair enough for your credit score.

It sure is easy to apply and get approved of a credit card and will just leave it open after few years or month. Leaving your credit line and cards open but not in use will give a bad impression of you; a credit risk. The risk in this scenario is that could forget about this open account and would stop repaying it would result to a low score.

If you have several accounts, make sure that you maintain the one which you use and have the others closed. It will be easier for you to keep track of your debts or bills when you only have one or few accounts opened. However, you should be informed that when you close an account, the record will still appear on your credit report which could still affect your credit score but just for a while.

Some of us are thinking that we only have one credit report, this is definitely a mistake. One can have at least three scores and they vary. The three major credit reports and all the other minor agencies can come up with their own reports and credit score matrix so if you are considering of having your credit score repaired, better contact all the three major credit report agencies and have a separate evaluation of your credit scores.

Be more mindful of all the online loan rate comparisons that you make. It sure is very very easy to get loan rates quotes on the web but the thing is, since it has become a trend for consumers and borrowers to be able to get the best possible deals, credit bureaus or agencies count each inquiry one makes. In other words, your score may likely to fall with the many hits or inquiries made.

This though should not stop one from making online quote inquires. Aside from it being free, it is also fast and could give you a lot of possible options. What you have to do though is that you have to limit or narrow down your search before you finally make an inquiry. This way, there would only be few inquiries made and would have your score remain good.

Never ever commit such mistakes again if you wish to finally have that car or house now.

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