Surprising Things That Can Affect Your Credit Rating
The credit score is supposed to be about the handling of money that how can you handle your credit, so it seems counter intuitive that non- loan action can also bring your credit score down. But unfortunately the reality is that even if you are not borrowing money, you could be still hurting with the credit score.
If you think that you have a high or a good credit history, but you have never checked it out, you might be for a surprise. So it is not just keeping up your payment and being responsible with your borrowing that will defiantly effects your credit score. So there are some of the ways which can damage or hurt your credit score and those will really shock you.
Having a company credit card
If you are person who is doing job in a company and you are the employer so the company has given the credit card then that can be affecting your own personal credit score. Most of the corporate cards are usually in joint names so that means you are jointly liable for the credit. It also means that if your company pays their bills late and it will impact on your credit score.
Using your credit card to rent a car
If you pay the deposit on a rented car with your debit card, then the car hire company will have to do a credit check on you. So every credit check that is made by you will take a point off your credit rating.
Paying a parking ticket late
No one like to get parking ticket and we also want to pay less for that, so that’s the reason people didn’t pay the ticket and wait until the last minute to pay them. If you didn’t pay then this will goes to your debt recovery company and this thing make your credit score down.
Not using the credit card
If you have a credit card and you didn’t use that even your credit card account in good standing but that have zero activity over a long period of time. May be your credit card issuer could chose you to close your account due ti inactivity. If you are not using it then it may be close after some time. So, this thing also effect on your credit rating.
Waiting for the reminder letter on utility bills
Utility bills are the most important thing to pay first but when you ignore, forget or leave to pay the bills of gas, electricity and etc. Then you will get a letter from a debt collection company that you have to pay the bills and this is another knock on your credit score.
Paying off a loan early
Even when you pay back the loan early, this can look bad on your credit history but, if you pay off the debt earlier then, you save some amount of money. This will also save your interest money which you pay with the debt. But that can look like you didn’t pay back all that you borrowed so, this thing also make your credit rating bad.
Under utilizing a credit card
Most of the lenders are looking that how much you use your credit card and how you will manage you debts responsibly or not. When you have credit available you never use the credit card, it still uses up some of your available credit and there is no history if your ability to manage credit if you never use the credit which you have available, it is better for your credit rating that if you use the credit card and pay back all the monthly bills on time.
Enquiring about loans
Making too many enquires about your loans or get many quotations for loans this will also knock some points off your credit score. In fact any hard credit check will lower your credit score so give back within the time period which required.