Monthly Archives: August 2017
Posted by Your Loan in the Valley
1. YOU PAY OFF THE WRONG DEBT
You would think paying off any debt would help your score, right? Not quite—it seems some debts are preferable than others. Auto loans, if paid off early, can potentially decrease a credit score.
2. YOU ONLY USE ELECTRONIC STATEMENTS
So you turned off paper bills, thinking you were saving trees… but records show that consumers tend to pay closer attention to paper statements versus email bills, which could end up in the spam folder or ignored over time. Only turn off paper if you’re meticulous about never missing a monthly payment, otherwise opt for both paper and an email notice to cover your bases.
3. YOU ASK FOR A HIGHER LIMIT
Some credit card issuers tend to issue credit limit increases automatically, without the cardholder requesting them, and don’t come with a hard inquiry to your credit, which can lower your score.
4. YOU CO-SIGN FOR A SIBLING, FRIEND, OR LOVER
Co-signing for a credit card, student loan, auto-loan/lease, cell phone, or even an apartment rental can have a negative impact to your credit score if the person bails on making payments.
5. YOU FORGET TO FILE YOUR TAXES
We all get busy and forget stuff, but if you fail to file and pay taxes you could see the result show up on your credit report.
Knowing what not to do with your credit history is as important as knowing what to do. If you’ve made any of these mistakes, don’t panic! It’s never too late to get your credit score back up to the number you want it to be.
Source: societyofgrownups.com By Jennifer Nelson
Your Loan in the Valley