Just because you pay your bills on time doesn’t mean your credit score will increase and stay that way. When it comes to nurturing your score, you need to know not only what can improve your score, but also, what can make it go down.
3 common reasons your score is lower than you thought it should be:
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 appears on your report.
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 don’t worry – 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
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.
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.