You pay your bills on time, but when you check your credit score, it’s low. Why the low score? There isn’t one quick answer – the reality is that there are many things that can negatively impact your score.
As part of our credit countdown to 2018, here are 3 common causes that can negatively impact your credit score:
1 – Applying for New and Multiple Credit Cards
If you apply for new credit cards within a short period of time, your credit score will lose points, 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 – 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. If you have good credit and make timely payments, your credit score will go up again.
3 – Error in Your Credit Report
If your credit score is lower than you think 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 your credit score, keep the unpleasant surprises to a minimum by knowing what you can do to improve your credit score. For instance, if you are one of the 100 million Americans paying rent, solutions like RentReporters can help you build and improve your credit score by reporting your on time rent payments to TransUnion.
Get ready for 2018 the right way by taking control of your credit today.
For more information on RentReporters, visit here.