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What else can Make Your Credit Score Low?

By George Hauser
Published: Tuesday, April 27th, 2010

The presence of credit score tips simply means that you have a partner in managing credit, or improving credit scores for that matter. Much has been said about what to do and what not to do when it comes to gaining and maintaining good scores. Is there anything else that can downgrade your score?

One of the few mistakes that people do is closing accounts, especially those that have made a good history of handling credit. Hoping that delinquencies will be deleted from credit history, people repeat the mistakes no matter what credit score tips say. You need to take heed to credit score tips because closing accounts because of overdue payments and such, not knowing that this will actually lower your score the more.

Closing accounts will show on your credit report. Nothing is kept unfiled by credit bureaus and every action is recorded for future use. When lenders request for your credit report and see some accounts that are closed, they may presume that you indeed wanted to get away with your debts. This will put you in a category that lenders make for whether you are credit worthy or not.

Credit score tips urges that you take a pause and take note on the following warnings before closing an account:

  1. Closing an account with remaining balance will immediately create a zero balance. With nothing left in the account, it will look like smooched every last dollar available on purpose. As a 30% bulk of your credit score, damage will surely break your heart. 
  2. Having one credit card and still closing it? Now, what else could be projected from this action but the inability to manage debt? Credit score tips can assure you that as long as you continue performing well in handling credit, there is no need to worry about getting bad scores. 
  3. Credit cards that are able to establish a good reputation must never be closed. This will give you a good face for the lenders to see. Having a long time working account that performs well could only mean higher credit scores for good management. Do not close accounts with low balance but have a good credit history. 

Not all actions create an instant credit score downgrade. Seek credit score tips that concern making the right decisions before taking action. Each move will cause you a score; make sure that yours will make a good one instead of a downgrade. It is always better to be safe and secure with all your moves thus the need for credit score tips. 

Many factors can help you gain good scores and know that there is no overnight magic for this. Do remember that losing score can be faster than gaining them. You can lose as much as 100 score points due to one incorrect move. You should always keep a list of precautions in mind in order to avoid them before they ruin your credit management techniques. Start performing well today and know what else could lower your credit score.

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