What 10 Factors Will Impact My Credit Score?
Everything you do with any of your finances has an impact on your credit score. Some things have a positive effect and others have a negative effect. Here are the top 10 things you can do that will have a negative effect on your credit score.
10 Factors:
- Applying for an account at a Credit Union as it may cause a “hard inquiry” into your credit.
- Using a “business credit card” for your business expenses, which you have personally guaranteed them. Instead, use your own credit card and price it out to your business.
- When you dispute a credit card charge it remains as a credit charge until resolved.
- Closing out “old” credit cards can hurt. The credit cards you have had the longest have a positive effect on your credit. They’re preferred by lenders over newly acquired credit cards. Longer is always better with credit.
- Renting a car with a debit card will cause the car rental company to run a credit check.
- Not paying your parking ticket will hurt your credit. They end up to your dismay at a collection agency.
- When you get a new cell phone the company runs a credit check on you.
- Asking your credit card company for an increase in your credit limit is new credit and initiates a credit check. If they give you an increase without you asking that is OK.
- Not using your credit card and allowing them to sit in your wallet or purse. It affects your “credit utilization” ratio and will lower your credit score.
- Using the finance plans offered by stores for a major purchase like a refrigerator should only be used as a last resort.
Good credit a must
One of the key components of buying a home is good credit. Avoiding things that will have a negative effect on your credit score is important. Use the previous items to insure your success in buy a new home. If Cliff Keith and Team can help be of help to you please feel free to contact by using the contact information provided in the signature below. Thank you.
For another complete list of what you don’t know that can hurt you about how you treat your credit read this special report “10 Things That Will Stop Your Home Loan”. It’s written especially for the readers of Cliff’s Notes on real estate… friends, family, and loved ones. Please click this link to read more about your credit. Thank you.