Keeping tabs on your credit score can be difficult — especially if you don’t know what’s hurting it. The truth is that even seemingly small things can have a profound effect on your score.
Whether you want to increase your credit score, fix mistakes on your report, or repair credit issues of the past, here are a few things you need to know that can affect your credit:
Closing Old Credit Cards: 15% of your credit score is determined by the length of your credit history. So, while it’s important to not have too many credit cards, you should keep an older card active to keep that history. Just be smart on how you use it and remember to pay your bills on time.
Not Having Any Credit Cards: Just like having too many credit cards can hurt your credit score, so can not having any. Why? Because you need to establish a credit history. If you can’t get your own credit card, then see if you can become an authorized user on someone else’s card. Just make sure that person has a responsible payment history, as their history will show up on your credit report.
Having High Balances on Your Credit Cards: Credit utilization accounts for nearly one-third of your credit score. And the higher percentage of credit you’re using, the lower your credit score.
Also, what you may not know is that you can have your rent payments reported tothe major credit bureaus. While you can’t report payments yourself, there are companies out there that can – like RentReporters.
RentReporters is helping the millions of renters to proactively impact their credit score by reporting on-time rent payments to TransUnion, one of the major credit bureaus.