There are many things that can affect your credit score. Some things that you do can affect your score in a positive way, while others can affect your score negatively. It is important to keep your credit in good standing, because it will have an impact on many things that you do during your lifetime.
Your credit score can impact your ability to purchase a home or a car. It can impact your ability to join the armed forces or get a job. It can also impact your ability to obtain student commercial property loans to go back to school. These are all things that most people will do or at least want to do during their lives.
This article will help to break down the way that things affect your credit score positively and negatively. Hopefully after reading this article you will have a better understanding of how to keep your credit in good standing.
Things that Negatively Affect your Credit Score:
Late Payments- Paying bills late is the number one thing that brings down credit scores. It is important that you make your payments on commercial property loans, credit cards and even utility bills on time. This will prevent companies from reporting you to the credit bureau and bringing down your credit score.
Collections- Sometimes there are circumstances where you just cannot afford to pay a bill. This happens to many people and is understandable; however the credit bureaus don’t understand! Whatever you do, do not let your bills go to collections. Call the company that you owe the bill to and try to work out a payment plan. If you can only afford to pay 10 bucks a month on the bill then only pay the 10 bucks a month. Paying a bill off slowly is always better than a collection.
Judgments- Judgments will negatively affect your credit score and will stick with you for 10 years. If you do end up with a collection try to work out a payment plan with the collection company before they take you to court.
Bankruptcy- While a bankruptcy is the only option for some people, it is best to try to avoid this at all costs. Bankruptcy will negatively affect your credit score and will stay on your credit report for at least 10 years. Bankruptcy will affect your ability to get a loan for a home or a car.
Things that Positively Affect your Credit Score:
Credit Cards- This may come as a shock to some people, but credit cards can have a positive effect on your credit score when they are used properly. Proper use of a credit card means paying it off at the end of each month. This means if you put $100 on your credit card in May, then you need to pay $100 on your credit card by the closing date in June. This will prevent you from paying unnecessary fees and it will show as a good standing account on your credit.
Checking your Credit Report- You should check your credit report every 6 months. If you do it more often than that it can have a negative effect on your score. Keeping an eye on your credit report will help you to catch mistakes quickly and report them. People who check their credit scores on a regular basis tend to have better credit than those who do not.
There are many things that can affect the rating. Some things that can affect the positioning in a positive way, while others can adversely affect your score. It is important to keep your credit in good standing, because they will have an impact on many things you do throughout your life. Your credit score can affect your ability to buy a house or a car. May have an impact on his ability to unite the armed forces or to find a job. May also have an impact on your ability to get student commercial property loans to go to school. These are all things that most people do or at least like to do during their lives. This article can help you break things affect your credit score of positive and negative. We hope that after reading this article you will have a better understanding of how to maintain the claim in good condition.
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