How to lower your credit score
Hello-
No one wants to lower their credit score on purpose. But there are ways to lower your credit score that you may not think of or may forget sometimes.
Of course, paying your bills late is one of the biggest reasons your credit score will go down so always make sure to pay all your credit card bills on time.
You also don’t want to have to pay a hefty late fee when you miss a payment so setup automatic payments to make sure your credit card bills are paid on time.
Here are two other ways your credit score can go down:
While debt is usually measured according to your income, a rule of thumb is to not have debts that equal or are more than one third your annual income. For a person that has a 30K income per year, this amount is 10K, for a person that makes 100K per year, this amount is 33K. It is important to note that usually your mortgage or student loans are not factored in this amount, but are considered.
Having Too Many Outstanding Credit Cards
Another way that your credit card score can be lowered is by having too many outstanding credit cards. While it is extremely easy to have three or four regular credit cards and then a half dozen store credit cards, many lenders look at the amount of credit cards as high risk. The reason is that even though you have zero or a relatively low balance, if the credit line on these cards are 2, 5 or 10K each you can easily run up a bill at any time and thus will have less money to pay off your debts.
Do your best to keep your borrowing to a minimum. If you don’t need the extra credit on higher credit line then say no and don’t take it. If your credit card company does increase your credit line that may be just the temptation you need to start a new spending spree buying stuff you’ll end up regretting later when you get the bill.
-Adam
Source:
American Chronicle, CA - 4 hours ago
Following are some of the factors that can lower your credit score. A credit score is a formula that varies among different credit bureaus, …
Tags: lowercredit score, low credit score, credit score, credit card bills
Written by Adam on January 23rd, 2008 with no comments.
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