You think you’re being financially responsible by paying your bills on time, but when you decide it’s time to check your credit score, you receive an unpleasant surprise – why is your score so low?!
There are many reasons that can bring down your credit score, and here are 3 common causes that can negatively impact your credit score:
1 – You’re Applying for New and Multiple Credit Cards
If you start applying for new credit cards within a short period of time, your credit score will lose points. Why? Because with each submitted credit card application, an inquiry will appear on your report. And if you have a short credit history, this could negatively impact your credit score. So, only apply for a credit card when you need it and can manage new debt.
2 – You’re Taking Out a New Loan
Got a new car loan? Taking out a home mortgage? New loans can result in your credit score taking a slight dip, but if you have good credit and make timely payments, your credit score will go up again.
3 – You Have an Error in Your Credit Report – What to do
More than 25 percent of consumers identified errors on their credit reports. So, if your credit score is lower than you thought it should be, check your credit reports, and if there are any errors, contact the reporting bureau and the party who provided the incorrect information.
When it comes to finances and your credit score, keep the unpleasant surprises to a minimum by knowing what you can do to proactively impact your credit score – like having your on-time rental payments reported to the credit bureaus.
At RentReporters, we are enabling renters to establish a credit score for the first time or improve an existing score. As a result, they are able access to appropriate credit products and reduce the cost of borrowing so that they can engage in important everyday economic activities that many others take for granted. These can include having cell phone or utility service without prepaying, and securing a car loan or home mortgage for the first time.