Whats Killing your Credit Score?
Friday, July 6th, 2007Many people are shocked when they get their credit report – the score is always lower than they expected. Here are some things that can affect your score:
- Missing payments. Each time you skip a bill, you add to your reputation of being a ‘risky borrower’. Don’t run away from your payments. If you’re over your head in debt, then seek refinancing or call your lender to renegotiate terms.
- Applying for multiple credit cards or loans. Sending mass applications can be seen as ‘volatile borrowing’ – why on earth would you need that much money? Also, remember all those institutions will request for a credit card report – and each time they do, it pushes your score down.
- Accumulating large debt. When your credit card’s near your credit limit, or you’re only making minimal payments, your score takes a nosedive. Aim for zero-balance.