If you’ve ever found yourself in credit card trouble, then chances are you have yourself to blame. After all, you are the one who has been using these cards to make purchases throughout the past year.
But have you ever stopped to think that what are the things that negatively affect your credit score? That’s what we’re about to find out today. Here are a few things that are known to hurt your credit:
Sometimes, it’s unavoidable. You miss your credit card payment due dates because of one thing or another. But if you’re consistent with the late fees, it will add up and can hurt your credit score. It tells creditors that you can’t keep your word.
Make it a point to pay your credit card bills on time to avoid any late fees and to prevent yourself from getting a bad rep.
Not paying at all
You know what’s worse than spending your bills late? Not paying them at all. You’re not a teenager anymore where your mom will be paying bills for you. You need to step up to the plate and take responsibility for your own actions.
Pay your bills, and don’t buy something with your card if you know for sure you won’t be able to pay it back come the due date.
Maxed out credit cards
Credit cards are so easy to use, that some people forget that it isn’t their money they are spending and that each swipe means more money to be paid back later. That’s why a lot of people max out their credit cards.
Maxing out a card or going over the limit has to be the worst possible thing you can do to damage your credit score. Pace your card usage, and keep track of how much you need to pay before or on the due date before swiping to make sure you don’t go over your limit.
Defaulting on a loan
Remember how we said not paying your debts are bad? If you go about it for too long, you’ll end up defaulting which shows creditors that you are unable to hold up your end of the loan contract.
Applying for several credit cards and loans
It’s tempting to try and apply for as many credit cards and loans and wait for the first one to give you the nod. But applying for all of them within a short time frame can hurt your credit score.
Instead of sending applications in bulk, apply to them one at a time. Wait for their rejection instead of anticipating it by applying for another credit card or loan.
These are just some of the many things that affect your credit score negatively. So, make sure to avoid these to prevent yourself getting into debt.
But if you do and you need a way to fix everything, proving to creditors that you can commit to paying something on time is the first step. So, consider getting a leased car from Alpha Car Finance to help you rebuild a less than stellar credit.