Four Things that Could Be Damaging Your Credit Score

Four Things that Could Be Damaging Your Credit Score

Oftentimes, many people don’t give their credit score much thought until it’s time to make a major purchase. However, by the time they do sit down and review their credit score, it may have already dipped to critically low levels. Having a low credit score can severely impact your ability to purchase a home or car, and in many cases, you may not even be aware that it is as low as it is. There are many things that could greatly affect your credit score, causing it to dramatically plummet. If you’re looking to improve your credit score, it’s important to quickly identify and address the various factors that may be negatively affecting it.

Your payment history.

Your payment history is arguably the number one thing that could be dragging your credit score down. In fact, it accounts for up to 35% of your overall credit score. While missing a payment here or there may not completely destroy your credit score right away, over time, it can start to take its toll on it. To avoid a negative report on your credit, be sure to consistently pay off all your debts.

Your debt levels.

Speaking of debts, another major determinant of your credit score is your level of debt. Having excessive revolving debt could do a serious number on your credit score, especially if your credit utilization ratio is high. To prevent this from harming your credit score, make sure you pay off your credit cards regularly to help keep your credit utilization rate low.

Your credit history.

Many people erroneously think that if they finally pay off a credit card, they can close off that account for good. This could be a serious mistake! Older lines of credit can actually improve your credit score by demonstrating that you do have a solid credit history. On the other hand, having little credit history can drastically lower your credit score. To help raise your credit score, it’s essential to make sure you have a well-established credit history.

Your credit checks.

Another common error that many people encounter is the incorrect belief that checking their credit score can damage it. In fact, staying on top of your credit score can help improve it by allowing you to see errors on it and disputing them when they arise. This is called a soft check. On the other hand, hard checks, such as those that occur when applying for a loan, do cause your credit score to decline. To keep your credit score up, keep an eye on it and try to avoid excessive hard checks on it.

Having a low credit score can prevent you from getting the needed funds to secure a mortgage or purchase a car. If you’re looking to improve your credit score, but you’re not sure where to begin, we here at Bay State Credit can help. To learn more about how our comprehensive credit repair services can get you on the path to restoring your credit score, please contact us today!

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