Some of the things that can negatively affect your credit are things that you might not have considered before. There are a few unforeseen things that we do that we wouldn’t think would have a negative impact on our credit scores but they do.

For example, if you are not using a credit card you might think it would be a good idea to go ahead and close the account. But if you do that it will harmfully affect your credit score. Much of your score is based upon the existing credit that you have compared to how much you are using. If you close the account then that amount is no longer obtainable to you and your debt to credit ratio goes down, negatively affecting your credit score.

Did you know if you own a credit card but you never use it the equivalent thing can happen? You might think that if you don’t use it, it can’t hurt you but a vendor can annul a credit card if it is never used and then again your credit to debt ratio goes down and your credit score goes down with it.

Another way to hurt your credit score is to use too much credit even if you pay it off every month. If your running balance is high during the month it affects you more than the fact that you pay it off every month. Try not to ever exceed more than 30% or your on hand credit on one credit line regardless of if you pay it off regularly or not.

Parking tickets and library fines may seem benign but they can end up on your credit report if you pay no heed to them, the same for behind schedule recurring bills such as a cell phone or a utility bill. As soon as a bill is referred for collections it can show on your credit report as a negative.

When you apply for credit a hard inquiry will show on your report. If you have too many inquiries it is a destructive for your score. Revolving credit such as department store cards is also looked upon as more destructive than other types of credit such as a car loan or a mortgage. It is probably not worth the 20% off that they give you on your acquisition to apply for their credit card.

It is significant for you to check your credit report and score on a repeated basis. It is estimated that as many as 75% of all reports hold inaccuracies and inconsistencies. You have the right to dispute anything on your credit but if you don’t find out about it until you are denied credit it may be too late for you. Check your report frequently and get the incorrect information removed. You are entitled to a free report from each of the credit bureaus one time per year. Take advantage of it.

The correct way to preserve your good credit is to avoid any problems in the first place. Even so, you may still sporadically find mistakes on your report. You can dispute them to repair your credit with the help of a professional credit repair service or you can do it on your own.

Repairing your credit can become needed at some point. If you need further information about credit repair visit http://724Credit.com and don’t forget to sign up for a free credit repair course.

Tagged with: • • • • •

Filed under: Business

Like this post? Subscribe to my RSS feed and get loads more!