FREE Ebook: 7 Ways You're Screwing Up Your Credit and What You Can Do Immediately to Fix It!
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π¨π¨7 Ways You Can Harm Your Credit Score Without You Knowing It:
1. π€·π½♀️Waiting until the due date to make a payment...
Most credit card issuers report balances around the time the billing cycle closes, before payments are usually made and credited.
2. Closing a π³...
Closing a π³ account affects scores because you lose the available credit on that account. Outstanding debt remains the same that can causing credit utilization ratio to jump up and credit scores to drop. However, do not leave accounts open that aren’t being used not using them and that cost money.
3. Applying for store π³ to get a discount on your purchase...
Every time you apply for a π³ there’s a “hard inquiry” on your credit. ππΎinquiry has little to no impact on your credit score. But if you have several within the last couple of years, your score can take a hit.
4. Cosigning on a loan...
Cosigning a loan means that you are equally responsible! π³If the person you have co-signed with fails to make a paymentπ‘ It will reflect on your credit report.
5. Paying off a loan…
You would think π€ paying off a loan, after paying it on time, would help your credit score to soar even higher, not exactly. Installment loans like a π loan or π mortgage, there’s a status change from “active payment” to “paid”, your score doesn’t know right away what that means. Your credit score might temporarily dip⬇️. Don’t worry, in a month or two your score will stabilize and go up thanks to having another account in good standing to your name.π
6. Not checking your report and score…
Sometimes a drop ⬇️ in your credit score can be due to an error on your credit report or even fraud. If you are unawareπ€¦πΎ♀️ of any problems, a small issue can turn into a big headache over time.π€―
7. Avoiding credit completely…π«
Truth be told, you have to use credit in order to build up a strong credit history. That doesn’t mean you have to go into debt- you can use credit responsibly. You’ll have a hard time accomplishing basic financial goals, renting an apartment, opening utility accounts and borrowing π΄ at an affordable rate if you ever need to.
To Learn How I Can Help You Increase Your Credit Score, Text CREDIT to 469-251-0076
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FREE Ebook: 7 Ways You're Screwing Up Your Credit and What You Can Do Immediately to Fix It!
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