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What Will Lower My Credit Score?

Here are some ways that you may inadvertently harm your credit rating:

If you have sufficient credit available to you and apply for more credit sources this can actually serve to lower your credit rating. Conversely, getting an installment loan when you have few credit options available can serve to significantly increase your rating.
Protect your credit score!Protect your credit score!
Making late payments on your credit options can have a large effect on your rating. While it always lowers it, it actually has a greater negative effect on your credit rating is high, sometimes even dropping it by triple digits. Having a lower credit rating to begin with makes late payments much less of a big deal.

If you apply for a new credit account or attempt to consolidate your old ones this can sometimes actually lower your credit rating, and should be avoided. It is actually better having your credit balance is spread out rather than in one big lump sum. Moving bounces around from one card to another can also result in a detrimental effect.

You should never ask a credit holder to reduce your credit limit. This will always result in a lower credit rating and should never be done unless absolutely necessary.

Bankruptcy, foreclosure, and loss of employment all have signification affects on your credit rating. However these cannot always be avoided in the short term and thus must be planned against advanced as much as possible.

by Margaret Walker on Tue, 12/15/2009 - 06:50

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