$2.17 for Children or Grandchildren
Top 6 Factors That Destroy Your Credit Score
A high credit score can open doors to new opportunities and better living. Having a high credit score can mean the difference between getting approved for a mortgage or not. Once you do get approved for a loan, the higher your credit score is the lower your interest rate will likely be. In some fields, an impressive credit score may even help you get the job you want. In order to keep your score high, you need to know what factors affect your credit.
For instance, one missed payment here and there won’t hurt your credit score, right? Wrong. Missed and late payments can actually ruin your credit. Missed and late payments are reported to the three credit bureaus and can stay on your report, lowering your score for years. Missed and late payments send the message to your potential creditors that you aren’t trustworthy, making you a higher risk.
Before you open up another line of credit, ask yourself if you already have too much credit. Revolving accounts are open-ended accounts such as credit cards. While these types of accounts can help you build credit, opening too many credit cards can negatively impact your credit score. The trick is to have a small number of credit card accounts — perhaps one to three and to perfectly maintain those accounts. Never let balances get too high and pay each account on time.
You should also be aware of whether or not your debt to credit ratio is too high. That’s how much debt you have compared to how much available credit you have. If you have a credit card account with a $4,000 limit and a $200 balance, your debt to credit ratio is low. If you have a $4,000 limit and a $3,000 balance, your ratio is high and this will negatively influence your credit report. Remember to keep balances as low as possible on all credit cards to keep your score higher.
Additionally, be cautious of too many inquiries. An inquiry is when a potential lender asks to view your credit report in order to get a good idea of your credit-worthiness. There are two types of inquiries that appear on a credit report: hard inquiries and soft inquiries. Examples of soft inquiries are when creditors check for pre-approved credit offers or when a potential employer or landlord checks your report. Hard inquiries are when you apply for credit and the potential lender checks your credit report. Only hard inquiries negatively impact your score. Since hard inquiries remain on your report for two years, try to limit their amount by not applying for multiple lines of credit if unless absolutely necessary.
While most people know that bankruptcy is going to hurt their credit, many people fail to realize just how broad and long-lasting the effects of bankruptcy are financially. Bankruptcies remain on your credit report lowering your credit score for up to ten years. Potential lenders will be able to see the bankruptcy and credit scores take a serious hit. On the other hand, just how much a bankruptcy will ruin your credit is based on how good your credit was preceding the bankruptcy. Unfortunately the higher your score was to start with the more of a hit it will take.
You might also be interested in...
- 7 Common Relationship Deal-Breakers
- Amazing Tips To Help You Get Through Allergy Season
- Anti-Aging Tips And Tricks
- Are We More Stressed Than the Rest of the World
- Are You Ruining Your Relationship
- Attitude Of Gratitude
- Beating Work Burnout is Easier than You Think
- Benefits Of Yoga And Meditation
- Beware Of Relationship Killers
- Big Cities Surprisingly Great for Outdoorsy People
- How To Boost Your Self Confidence
- Can Saying You’re Sorry Save Your Life?
- Can White Wines Be Healthy Too
- Changing Careers In Your 40s
- Divorced, But Are You Ready To Start Dating Again?
- Do You Fight Like Other Couples?
- When you don't have a green thumb
- 8 PreWorkout Meals To Maximize Results
- Financial Benefits Of Co-Habitation vs Marriage
- Financial Tips To Follow During And After Divorce
- Five Ways To Lead A Regret-Free Life
- Can A Full Moon Really Affect People?
- Getting a Life Insurance Quote Without Getting a Medical Exam
- Health Benefits Of Almond Milk
- The Health Benefits Of Avocado
- Health Benefits Of Cinnamon
- How To Choose A Multivitamin?
- How To Make The New Year The Best One Yet
- How To Prepare For Your Next Interview
- Is a Co-worker Making You Hate Your Job?
- Is The Ketogenic Diet Safe?
- Is Music The Antidote For Depression
- Is Your Diet Making You Feel More Stress?
- How To Keep Your Facebook Safe From Scammers
- Life Insurance Companies Offer Protection
- Living With Fibromyalgia
- How To Look Better Than Ever At 40
- More Big Cities Surprisingly Great for Outdoorsy People
- Natural Remedies For Acid Reflux
- No Medical Exam Life Insurance: Only a Few Y/N Health Questions
- 10 Olympic Sports That Didn’t Make the Cut
- Outrageous Facts about U.S. Presidents
- Ovarian Cancer--The Silent Killer
- Overcoming Frustration
- How To Get Relief From Credit Card Debt
- Is There A Risk of Heart Disease Due To Drinking?
- Shocking Food Facts that May Change the Way You Eat
- Sick Of Running? 5 Cardio Routines You Should Try Instead
- Smart Tips for Getting Paid What You Really Deserve
- Strange Laws You Don't Even Know You're Breaking
- The Singles’ Guide To Life Insurance
- Things To Remember When Buying Life Insurance
- Top 5 Things You Need To Know About Life Insurance
- Top 6 Factors That Destroy Your Credit Score
- Top Ten Health Tips For Active Women Over 50
- Treating Menopause Symptoms With Alternative Medicine
- Want To Know How Your Interview Went? Think Of It Like A First Date…
- What Every Woman Should Know About Breast Cancer
- What Is Ruining Your Workout
- What Most 30–Somethings Wish They’d Known in Their 20s
- Whats Really To Blame For Your Bad Mood
- Why You Keep Overeating and How to Stop
- Why You Need To Talk About Life Insurance
- You Can't Afford to Believe These Women's Health Myths