You pay your bills on time, and when it’s time to check your credit score, you receive an unpleasant surprise – a low credit score!
3 common causes that can result in a low 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
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 your credit score, keep the unpleasant surprises to a minimum by knowing what you can do to improve your credit score – like having your on time rental payments reported to the credit bureaus.
Solutions like RentReporters can help you establish a credit score for the first time or improve an existing score by having your on time rent payments reported to TransUnion.