4 Things You Didn’t Know Could Affect Your Credit Score
Chances are that you’re aware of the importance of your credit rating. Having a good credit record makes your life so much simpler, and can save significant financial stress and trouble down the track. However, what you may not know is that there are a range of small things that can be negatively marked on your credit history. Here are 4 things that you might not be aware of that can adversely affect your credit score.
Late or Unpaid Bills
Some people seem to think that smaller bills won’t affect their credit record, and are therefore more relaxed about staying up to date. Unfortunately, something as simple as a forgotten phone bill, no matter how small, can cause serious damage to your credit rating. Make sure you always pay your bills on time, or advise your service provider immediately if you intend on making a late payment for any reason. With advance notice, you can have more time to pay your bill without leaving a nasty mark on your credit record.
Not Checking Your File
Unfortunately due to identity fraud or simple clerical error, there have been cases of people having inaccurate entries on their credit report. If you aren’t being proactive and periodically checking a copy of your file, you can run the risk of being refused for loans due to something that isn’t actually your fault. Even though you may not have caused the bad credit activity, it is still your responsibility to keep an eye on your credit file and immediately report any inconsistent or inaccurate results.
Falling Behind in Repayments
As of December 2012, late payments on your loans and credit cards can now show up on your credit history. Make sure that you meet all of your financial obligations on time for a clean credit record, or contact your lender as soon as you are experiencing any difficulty making a payment. As a general rule, try and keep any expenses on your card at below 30% of the total to keep your credit history in the clear.
Making Too Many Applications
It is a little known fact that applying for several loans can actually adversely affect your credit score. This is a common mistake, particularly when looking for a competitive home loan. Instead of making several applications in a short succession, try shopping around for the best loan first. Once you are sure it is what you are after, you can proceed with your application.
Need Some Assistance?
If you’re concerned about your credit history and want to get it back into shape as soon as possible, have a chat to the friendly team of professionals at Fox Symes. In addition to helping you to manage your financial situation, the FSA Group can also organise loans for individuals who have had bad credit in the past and are looking for a simple solution to their financial issues.
To ensure the best chance of success in your financial future, make sure you truly understand your credit history and how it can affect your life. By being vigilant and keeping track of your records, you can make sure that your credit rating stays in the best possible shape. For more information and advice on how you can improve your credit rating, talk to the professionals at Fox Symes.
Category: Credit Score
