Credit Rapport: Why Certain Decisions Always Will Ruin Your Credit

Ask anyone who doesn’t have good credit and they’ll tell you just how hard life can be when those three numbers don’t look so hot when it comes time to borrow money. Whether you’re opening up a credit card, trying to buy a car or finance a home, or even find your way to your local, company run credit union for a home equity loan, you aren’t going to get very far or amass much in the way of a loan or, worse yet, a reasonable interest rate if your credit score is in the 500s or 600 range. So how exactly did it get this bad? How did your credit score get so poor and leave you with a lot of uphill climbing to do? First off, you have to take a look at your payment history and understand that paying late is a sure fire way to lose points on that credit score. Missing payments and having creditors send you to collections only means that your score is going to take a nose dive. This tells future lenders that you aren’t capable of being able to pay on time and thus questions if they’ll get their money back anytime soon. Your score isn’t going to look very appealing, either if you’re interested in using credit cards quite a bit, to the point that your balance and your max limit are basically the same numbers. Having a $5,000 credit card and even paying on time doesn’t really mean a whole lot if you owe that same $5,000 number. Maxing out credit cards is about as ill-advised as missing payments, and both are going to lead to credit issues and a score that is going to start to sink faster than you could think. Not paying on time or running up credit cards is something that you do and you know you’re doing it. You’re aware of it, but what about your actual credit report. Does it look accurate? Do you check it from time to time? The trick is to keep as up to date with your credit report as possible, seeing as how mistakes are made and you can have debt in your name and have that be an inaccuracy. These three small tips can take what is an average or below credit score and transform it into one that creditors and lenders look at and have little if any trepidation when it comes to giving you the loan or line of credit you need.