Things That Can Kill Your Credit Score

**Things That Can KILL Your Credit Score

 If you are even thinking of buying a home, your credit score is #1 to all financial institutions, especially in today's market. Unfortunately your credit score defines you as to what type of person you are in our country. That number will haunt you day in and day out and can stop you from getting the things you want such as; credit cards, a car, a home, even an apartment rental. Your credit report tells lending institutions and individuals the type of payment habits you have. The higher your credit scores the better because you can qualify for lower interest rates and more loan programs.

But if your score isn’t where it should be, there could be a few things KILLING your score. Below are a few things that can literally drop your credit score significantly such as:

1. Applying for Credit: If you apply for any type of credit such as credit cards, a car,  or a home it will be reported on your credit report that you are seeking credit. When an outside company pulls your credit report it will effect your score.

  Do you know your credit score? Did you know that if you check your credit score yourself your score will not drop lower?

Click below to check your credit report.

 2. Loans:  Your credit score can plunge if you have any loans (car, timeshare, home mortgage, student loans, credit cards) that you haven’t paid on time or at all. Your best bet is to speak to 2 or 3 mortgage representatives to look over your financials.

3. Late Payments: Did you know that paying your bills late can affect your credit score? Well, if you look closely at your credit report you will see your payment history for your bills. If you pay your bills late it will lower your score and tells the lender that they may not get their payment on time either.

4. Not Paying At All: If you haven’t been making payments on certain bills, guess what? The nonpayment will show up on your credit report for everyone who views your report see and will seriously affect your score. When you don’t pay your bills it leaves a bad taste in the mouth of financial institutions. Why? Simply because they’re not sure that if they give you a loan that you will stop making payments as well.

5.  To Much Credit: There is such a thing as to much credit. Say, you have ten credit cards and they are all maxed out, that means you may have to much outstanding debt compared to your income. When this happens, your score goes down because the amount you owe and is pretty high. Based on your financial situation, a lender may not grant you a loan for a home because your outstanding debt is to high.

6. Not Enough Credit: There is such thing of not having enough credit and it will affect your score. Without enough credit or no credit you are considered a high risk because lenders don’t know enough about your payment habits.

7. Owe Small Amounts: If you owe small amounts of money on your bills and haven’t paid it, it makes you look worse than owing a larger amount. Why? Think about it, if a lender is about to lend you a large sum of money and you haven’t even paid a bill say for $30 dollars, what do you think the lender should do? Pay off the small amounts and your score will begin to rise.

8. Co-signer: Bad news, if you co-signed for someone else for a home, car, timeshare, student loan  your score can be in trouble. When you co-sign a loan for someone else the loan is under your name as the primary person on the loan. If the person that you co-signed for pays late or defaults on the payment you are responsible for the debt and it will affect your credit only. So beware of becoming a co-signer because it can seriously damage your credit if things go wrong.

So What Is The Solution?

If any of the things listed above relates to you then you order your credit report from all three credit bureaus. You will need to know each credit score from each bureau to get your high, medium and low score. You will need all three credit scores to make sure they all have the same information, and to get all of your scores. Lending institutions will require seeing all of your scores and reports from all three credit reports.

  7-day FREE trial of 3 Bureau Credit Monitoring! Plus Credit Report & Score - $0

The next thing you can do is to work on repairing your credit before you seek out a loan. This is the best choice because when you are ready to buy something you will have cleared your issues on your credit to increase your score and to qualify for a better rate. But, clearing your credit is not as simple as you think and you can literally make it worse if you don’t know the do’s and don'ts for clearing your credit to increase your score.

Check out this ebook called "37 Days To Clean Your Credit". This internet book is filled with great tips that will help you to clean up your credit and boost your credit score.  Boost Your Credit Score 135 in 37 Days!  

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