Finance and Law

Financial Mishaps that can Damage Your Credit Score

<p style&equals;"text-align&colon; justify&semi;">In today’s world&comma; your credit score is a highly reliable way to determine how financially responsible and trustworthy you are&period; Your <a href&equals;"https&colon;&sol;&sol;newsforpublic&period;com&sol;build-better-credit-score-buy-house&sol;">credit score<&sol;a> is most useful when you wish to take out a large loan to buy a house&comma; a car&comma; or anything of the sort&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Having a good credit score means that your loan is easily approved and you can get a low-interest rate as well&period;<br &sol;>&NewLine;The real formula for calculating your credit score is a top-secret guarded by FICO&comma; however&comma; there are many ways to determine how well you are scored and how to keep track of it&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Maintaining your credit score can also be quite precarious&comma; and even the tiniest bit of neglect can really throw your score under the bus&period; Even though websites like <a href&equals;"https&colon;&sol;&sol;creditrepaircompanies&period;com&sol;lexington-law&sol;">Lexingtonlaw&period;com reviews<&sol;a> your score and can help you get back on track&comma; it is still risky business to have your score go down in the first place&period;<&sol;p>&NewLine;<h2 style&equals;"text-align&colon; justify&semi;">So here are some mistakes you might make that can harm your credit score&colon;<&sol;h2>&NewLine;<h3 style&equals;"text-align&colon; justify&semi;">Missing or Delaying Loan Payments<&sol;h3>&NewLine;<hr &sol;>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Perhaps&comma; being irresponsible with loan payments has the greatest negative impact on your credit score&period; It’s usually alright if you have missed one payment or have delayed it for a couple of days but if a delayed payment of around 30 days is reported to FICO&comma; your credit score could take a massive blow which could be really difficult to recover from&period;<&sol;p>&NewLine;<h3 style&equals;"text-align&colon; justify&semi;">Sudden Spike in Credit Card Balance<&sol;h3>&NewLine;<hr &sol;>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Another thing that can really put a dent in your score is when your balance goes up but your credit card limit remains the same&period; If you can somehow manage to pay off the balance immediately you might be safe&comma; but it is best to keep your balance as low as possible&period;<&sol;p>&NewLine;<h3 style&equals;"text-align&colon; justify&semi;">Prolonged Unemployment<&sol;h3>&NewLine;<hr &sol;>&NewLine;<p style&equals;"text-align&colon; justify&semi;">While short bouts of unemployment don’t harm your score too much&comma; it is a prolonged term of unemployment that you need to watch out for&period; When you consistently receive unemployment benefits or credit card companies take note of your decreased income&comma; they make it a point to report it which can really bring down your score&period;<&sol;p>&NewLine;<h3 style&equals;"text-align&colon; justify&semi;">Unpaid Bills<&sol;h3>&NewLine;<hr &sol;>&NewLine;<p style&equals;"text-align&colon; justify&semi;">It is not just missing loan payments that can harm your credit score&period; If you have any unpaid utility bills or medical bills&comma; that can also show your credit card companies that you are indeed a financial disaster and they can bring down your score further&period; Even something as simple as overdue books at the library can trigger this phenomenon so be very wary of your everyday financial responsibilities&period;<&sol;p>&NewLine;<h3 style&equals;"text-align&colon; justify&semi;">Closing Credit Cards<&sol;h3>&NewLine;<hr &sol;>&NewLine;<p style&equals;"text-align&colon; justify&semi;">Closing a credit card on its own is not exactly sinful&comma; but it is when you close a card with an unpaid balance on it that can make your score plummet even further&period;<&sol;p>&NewLine;<h3 style&equals;"text-align&colon; justify&semi;">Applying for too Many Credit Requests<&sol;h3>&NewLine;<hr &sol;>&NewLine;<p style&equals;"text-align&colon; justify&semi;">While taking loans and using credits and being responsible for the payments is generally a good thing&comma; it is undesirable when you apply for too many requests in a very short period of time&period;<&sol;p>&NewLine;

Hardik Patel

Hardik Patel is a Digital Marketing Consultant and professional Blogger. He has 16+ years experience in SEO, SMO, SEM, Online reputation management, Affiliated Marketing and Content Marketing.

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