5 Factors that negatively affect your credit score - Bitcoin Forex Loans Insurance Busines

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Tuesday, October 3, 2017

5 Factors that negatively affect your credit score

There are plenty of financial mistakes that could sabotage your credit score. But some do much more damage than others. Five errors in particular are so serious that could be called murderers credit score. To protect your credit needs to be aware of what are to avoid them.
1- Late payments
It is the public enemy number one credit score. Fall behind in paying their obligations destroys your credit score because credit rating companies put more stock in the performance of your bill payment than any other financial performance.In fact, failure or delay in payments do more damage to your credit score several of the other offenders on this list combined. That's important because your credit score first, tells lenders if they can trust you with credit. If you are not paying your bills on time or if you skipped payments to completely, your credit score will be adversely affected. So it is crucial and essential to pay your bills on time.
2- balances with amounts too high
This is not as important as your payment history but makes weight on the credit history of an individual. The execution of large amounts of debt is a definite red flag for lenders. They are very interested in knowing that you can handle the amount of money you want to borrow. Therefore, credit rating companies penalize you if you borrow more money than you can comfortably afford.
Definitely not a good idea to run large balances on your credit cards. That's a sure sign to lenders that you may not be able to handle any new credit. If you want a better credit score need to keep your debt to income ratio in balance.
3- Lack of credit history
You can not get a job without a resume describing their work experience. Similarly, a resume credit that will illustrate your experience with credit is needed. That's what your credit history is, your resume credit. If you are an experienced borrower's credit history is important, and if a novice is crucial. Of course, this leads to the proverbial dilemma how prove worthy of credit with a limited credit history? One answer may be to take out a secured credit card and start building your credit with it.
4- Too much new credit
The loan money comes with great responsibility and lenders want to see that you manage your credit carefully. If you are constantly opening new lines of credit your credit score will be negatively relevant affected. By doing this continuously, the time came that no longer give more credit. You must resist most credit card offers, taking only those that are vital to their financial strategy. Try to avoid opening numerous credit cards stores to take advantage of discounts in stores.
5- Having credit too limited
For a high credit rating it is necessary to have a mix of different types of credit: credit cards, a car loan, a mortgage and even a quick loan is taken into account.
How many of these murderers credit score are now released in its financial profile?Take steps now to put them behind bars and you can quickly see how your credit score up.