Credit Report Blog
Website CertifiedPrivacy Protected

Things that Make You Have a Bad Credit Score

By Ruth Racey
Published: Monday, December 28th, 2009

Thinking of things that makes you have a bad credit score? Here are some of the most common of them: 

  • Having too many credit accounts
    One of the most harmful myths that credit consumers believe in these days is cancelling an old credit account that has a bed credit history to improve one’s credit score. Not only that it is false, it actually makes you have lower scores. Remember that even though you get a new credit account, bad credit history is still there to stay. In addition, having more and more credit accounts will also lower your score. In this case, the best thing that you can do is for you not to have too many credit accounts. 
  • Accessing your credit report too much
    Sad to say, the time that you are accessing your credit report too often, it already starts to hurt your credit score. In this case, the best thing that you can do is minimizing your access to your credit report. It may be true that regularly getting your credit report is essential in monitoring your credit account; however, do not overdo it, be sure to access your credit account only when you need it.
  • Delinquency in paying your bills
    Also, one of the main reasons why you may have a bad credit score is because of delinquency in paying your bills. Remember that every time you actually are paying your bills delinquently, there are higher chances that credit agencies are at a loss. In this case, such activity surely makes credit agencies give low scores to your account. Therefore, do not overlook the importance of always paying on time. This significantly makes your credit score better.
  • Having a high credit to debt ratio
    Whenever you have a high credit to debt ratio, surely, it will hurt your credit score. This is because of the fact that a high credit to debt ratio actually makes you have higher chances of accumulating debt. Basically, a credit to debt ratio is the ratio between your total outstanding balance and our credit limit. In this case, always be sure to lower this ratio, and better scores will come. 
  • Spending over your credit limit
    Do not forget that a credit limit is there for a purpose. It may be true that it is very convenient to spend using your credit card; however, do not be too confident in spending way beyond your credit limit. Surely, this will make you have a low credit score. In addition, keeping your expenditures below your credit limit will surely make you a better financial manager.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.