25 Bad Habits That Hike Up Your Credit Score

25 Bad Habits That Hike Up Your Credit Score

Morgan Quinn  Mon, March 6, 2023

Understanding exactly what is hurting your credit score can be difficult. The truth is that even seemingly small things can have a profound effect on your score.

FICO credit scores are the most widely used scores by lenders and typically range from 300 to 850. This score is calculated from information in your credit report -- including whether you've paid accounts on time, how much you owe, how long you've had credit, what types of credit you have and how many new accounts you have. Although there are five main factors used to figure out your credit score, there are countless ways to screw it up.

"There's a lot of things you could be doing wrong," said credit coach, Jeanne Kelly, with ReadyForGoodCredit.com. "Most of the time, the people who come to me don't even realize what they've done wrong."

Whether you want to increase your credit score or repair credit issues of the past, knowing what can trip you up can help ensure you don't hurt your credit score.

1. You Never Check Your Credit Report

It is super easy to forget to check your credit score or be too worried to do it. Some say that ignorance is bliss. Unfortunately for them, that blissful ignorance will come to an end the day they want to buy their first home or car or rent an apartment.

How to avoid it: This is one of the biggest mistakes you can make while also being the easiest to avoid. Checking your credit score will alert you if there is fraud linked to your name, show you your credit score and let you know if anything else needs to be remedied.

How to fix it: If you never check your credit score, start today. Better yet, start now! It's as easy as going to CreditReport.com.

2. You Pay Your Bills Late

Your payment history has a major impact on your credit score. U.S. News & World Report estimated that a single late payment can lower a credit score by 100 points or more. However, borrowers might be able to mitigate the damage, assuming they act fast. While missing a payment by just a few days likely won't put your scores at risk, paying bills 30 or more days late can have a serious effect on your credit.

How to avoid it: Do whatever is necessary to avoid being late on payments. If you are forgetful, set up reminders on your phone or computer. If you spend too much, tighten your belt so you'll have the cash to make your payment.

How to fix it: If you paid a bill late, contact your lender to get its policy on reporting late payments. Unfortunately, if the lender has already reported the late payment, you probably won't be able to get it removed from your credit report. You'll just have to make sure all future payments are made on time.

3. You Have Too Many Credit Cards

To continue reading, please go to the original article here:

https://news.yahoo.com/25-bad-habits-hike-credit-221925128.html

Previous
Previous

Bix Weir and Greg Mannarino Tuesday PM 3-7-2023

Next
Next

More News, Rumors and Opinions Tuesday Afternoon 3-7-2023