College and Credit 3 Things That Can Ruin Your Credit

While you’re in college, start doing your homework and learn the importance of credit. Why? Because credit follows you your whole life and is what enables you to get what you need, like a cell phone plan, utilities and credit cards.

3 things that can ruin your credit:

1 – Late Payments

Your payment history makes up 35% of your credit score, so make sure you pay your bills on time.

2 – High Credit Card Balances

How close your balance is to your credit limit – in other words, your utilization rate – can affect your score. The higher your utilization rate, the more likely your score will be negatively impacted. If you can, try to keep your utilization rate below 30%. For example, if your credit limit is $1,000, keep your balance below $300.

3 – 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 can lose points. Why? Because with each submitted credit card application, an inquiry will appear on your report. 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.

If you’re a renter, solutions like RentReporters can help you build your credit. The process is simple – you sign up, and we verify your rent payments and report them to TransUnion. Your score can then increase in 15 days!

 

For more information on RentReporters, visit here.

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