7 Ways You Can Harm Your Credit Score Without Knowing It

A good credit score is an ultimate essential that makes borrowing easy. One needs the hold of a good credit report to ensure that his financial opportunities open up and approval becomes an easy task. A credit score is a representation of credit health and activities in the past and present that helps in deciding the future activities of the borrower. If you are looking for a loan you must check credit score regularly. There can be many ways you can harm your credit score without knowing it. Once you get to understand how your activities are damaging your score you can refrain from doing so.

7 ways you harm your credit score

● Not paying the entire bill amount. If you end up paying only the minimum portion of the bill, there stands an overdue amount. This amount will be pending and it ends up hurting your credit score along with the accumulated rate of interest and late charges.

● Applying for too many loans once you get rejected can be a damaging factor. Every time you apply for a loan there is a hard enquiry that decreases some points from your credit score. Start working on your score and stop applying to multiple credit options.

● Do not close the credit accounts that were used for long. A long credit history helps in building a good score. Additional new credit accounts can damage your credit score.

● Pay your bills on time. There is no other alternative to paying bills on time. You must pay it within the due date. If you delay your payment, you hurt your credit score and make it more costly with additional charges.

● Applying for a new credit card is not a good idea if you already have one. When you apply for a new card there is a hard enquiry and you will lose out on credit points. This will damage your score further.

● Do not completely use up the credit limit given to you. You must use the credit and pay off the bills on time. There should be an available credit limit.

● Maintain your debt to income ratio balanced. If your entire income goes into paying your EMI, this will be damaging your score. Make sure you increase your income or stop taking any further loans.

Finishing up

Check credit score online to keep yourself updated. It will help you improve your score for better financial opportunities.