Marc Chase asked:
You probably already have a good idea of how important your credit score is, and why you should do all you can to keep it looking as good as it can. If it’s not in tip-top form, you do what you can to improve your credit score, whether on your own or through credit repair services.
But what’s the best way to raise or maintain your score? What are the major pitfalls to avoid so you don’t end up in the credit doghouse? In the interest of helping you fix your credit before things get too desperate, here are 3 of the top credit score killers to avoid.
1. Avoid late payments. We all know that making a payment late (or missing it altogether) doesn’t look good on your credit report. What most people don’t realize is how badly even one missed payment can reflect on your credit report, sometimes deducting as many as 20 points off your score. The longer you go without making a payment, the faster your score will fall. Always try to make the minimum payment on your credit accounts, and ALWAYS on the due date.
2. Keep your accounts out of collections. If any of your late payment accounts goes into collections, then your credit report is really in for a world of hurt. Collections can drop your score anywhere from 70-100 points, depending on the account, making you look completely financially irresponsible in the eyes of creditors. This could translate into rate hikes and a door slammed in your face if you should ever try and apply for new credit. Again, this can be avoided simply by paying bills on time.
3. Make sure you don’t have too many inquiries. This last point is an often overlooked one, and while it’s not as detrimental on your report as late payments or collection accounts, having too many recent inquiries can add up over time if you’re not careful. Luckily, you only run the risk of having too many “negative” inquiries if you are actively searching for new lines of credit and are consistently rejected. This makes you appear desperate to any other lenders or creditors who take a look at your report, and that’s never a good sign.
Use this guide to help you dodge the minefield of bad credit pitfalls out there and keep your credit in to form.
Frederick
You probably already have a good idea of how important your credit score is, and why you should do all you can to keep it looking as good as it can. If it’s not in tip-top form, you do what you can to improve your credit score, whether on your own or through credit repair services.
But what’s the best way to raise or maintain your score? What are the major pitfalls to avoid so you don’t end up in the credit doghouse? In the interest of helping you fix your credit before things get too desperate, here are 3 of the top credit score killers to avoid.
1. Avoid late payments. We all know that making a payment late (or missing it altogether) doesn’t look good on your credit report. What most people don’t realize is how badly even one missed payment can reflect on your credit report, sometimes deducting as many as 20 points off your score. The longer you go without making a payment, the faster your score will fall. Always try to make the minimum payment on your credit accounts, and ALWAYS on the due date.
2. Keep your accounts out of collections. If any of your late payment accounts goes into collections, then your credit report is really in for a world of hurt. Collections can drop your score anywhere from 70-100 points, depending on the account, making you look completely financially irresponsible in the eyes of creditors. This could translate into rate hikes and a door slammed in your face if you should ever try and apply for new credit. Again, this can be avoided simply by paying bills on time.
3. Make sure you don’t have too many inquiries. This last point is an often overlooked one, and while it’s not as detrimental on your report as late payments or collection accounts, having too many recent inquiries can add up over time if you’re not careful. Luckily, you only run the risk of having too many “negative” inquiries if you are actively searching for new lines of credit and are consistently rejected. This makes you appear desperate to any other lenders or creditors who take a look at your report, and that’s never a good sign.
Use this guide to help you dodge the minefield of bad credit pitfalls out there and keep your credit in to form.
Frederick
