Why do people have a low credit score? What would be the reaction of people who have no idea what happened and they incur a low or worse, a failed credit score?
There are three ways why some or rather, most of the people have a low credit score. These three ways are just some of the practices they are not aware that they are doing.
And I tell you (yes, seriously, I tell you) to stop doing these things that will sabotage your credit score.
Occasional Late Payments
One of the biggest reasons causing a low credit score is late payments. People who think that late payments to their bills would not have an effect on your credit score? THINK AGAIN.
Credit scores cover most your transactions and public details. Any slight late payments that the creditors or lenders see in your data will have a big impact on how you will have your credit score.
Be always mindful to pay debts on time to avoid having a low credit score.
Unable to pay the balances each month
Credit cards play a huge role in your credit score. They can make or break your credit performance. If you are unable to pay your credit card monthly, then, there is a huge possibility that you might have a low credit score.
Always pay at least the minimum payment on your credit card monthly to avoid a poor credit scores.
Too much Credit
Having too much credit can damage your credit score. Applying for too many loans or credit cards will not help you or your credit score - it will only decrease your score.
But, I can't help it, it's tempting.
I know, it is tempting, Don't give in! Either you want to improve your credit score or you want to enjoy an excellent credit score, To succeed, you should avoid these three traps that will ruin your credit score. Credit scores also are used to rate insurance premiums and a low score can cause higher insurance payments than necessary.