We at ScoreSense review credit reports, and so we’re well aware of some of the challenges that consumers face when trying to build and maintain a favorable credit score. Unfortunately, many people make mistakes with their finances, simply because they do not know how to best manage their credit. Here, ScoreSense reviews some of the most common credit pitfalls, and offers suggestions on how to avoid them.
- Acting like a deadbeat can blow your credit score. Late payments, failure to pay, repossessions—these are all black marks against you that can seriously lower your creditworthiness in the eyes of lenders. Pay your bills on time to avoid a low credit score. Remember, anything that goes to a collection agency remains on your credit report for seven years!
- Bankruptcy isn’t the clean slate you might picture. Lenders and employers can still access information about what led to the bankruptcy, and it might hurt your chances of getting a loan or a job. Even when times are tough, avoid bankruptcy if at all possible.
- Exceeding your credit limit has a negative impact on your credit. In fact, maxing out your credit cards while staying within the limits is not great either! Creditors like to see a large gap between credit available to you and credit you are using, so try to keep your balances down to 30 percent of your limit.
- Closing old accounts can be a bad move. Lenders like to see history, so even if you’ve paid off some of your cards, keeping them open is a good idea. Also, having cards with zero balances will improve your credit-to-debt ratio.
- Not knowing what’s on your credit report is a mistake. While it’s easier if you have help, even if you don’t subscribe to a service like ScoreSense, review your credit score from all three credit bureaus annually. It’s free, and by knowing what’s on those reports, you can fix errors and take control of your financial situation. The advantage of a ScoreSense review, of course, is that it not only checks the scores, but provides a continually updated picture of your credit rating.
With ScoreSense, review of your credit record is just the beginning of what a membership entails. Dedicated to giving people power over their finances and their lives, ScoreSense also monitors account activity, sends up-to-date reports of pertinent data, and even offers information to help you keep your family safe. If you’d like more info on ScoreSense credit reports and credit monitoring, visit us at www.scoresense.com.