You’ve finally paid off your credit card bill, so you decide to close that account. But after, your credit score took a hit! Sound familiar? When nurturing your credit score, knowing what NOT to do is just as important as knowing what to do.
To help you nurture your score, here are 3 credit mistakes to avoid:
- Applying for Store Credit Cards – Who doesn’t like to save money by filling out a credit application and getting a discount on a store purchase that day. But remember, you’re opening a line of inquiry on your credit, so your score could go down.
- Forgetting to Check Your Credit Reports – Checking your reports will not negatively impact your score. The fact is that an inquiry will affect your score only it there is a credit application. You need to check your credit reports to make sure that your score accurately reflects your personal information and credit history.
- Avoiding Your Creditors – If you can’t meet your financial obligations, don’t avoid your creditors. More often than not, they will work with you on a payment plan.
If you’re renting, did you know that you can nurture your credit score by having your on time rent payments reported to the credit bureaus? Solutions like RentReporters can help you build and improve your score by reporting your payments to TransUnion.