There are all kinds of things which affect your credit score. Some of these things are more obvious than others. If you have been carrying extremely high debt, have been in extreme default, or have declared bankruptcy, these of course will have adverse impact on your score. Here are a few of the lesser-known things which could be impacting your overall credit score.
5 Credit Score Factors You May Not Know
Too-Few: This is one which may surprise some credit score purists. However it is true that if you have too few credit accounts that can negatively impact your credit score. You are not going to get an accurate credit read of your credit worthiness if you can’t prove that you are a “safe” credit risk.
Too-Many: As much sense as “too few” makes, many would think that too many credit profiles is just the credit reporting agencies messing with you. But if you have too many credit accounts on which you are carrying balances that can be a problem as well. If you do pay off and call to close a credit account you should ask for written confirmation from the company that they have in fact closed your account. In a couple of months you should get a copy of your credit report just to be sure that this has been tended to.
Too-New: If your credit history is “too new” your credit score also could suffer. They don’t just hand out an 850 credit score to just anyone. Keep your nose to the grindstone, pay off your balances on time, and your score will rise.
Inquiries: If you have made too many credit inquires in the last 12 months that could negatively impact your credit score. Even though you might want the free whatever they are giving away for applying you should remember your credit score.
Unknown: If your profile balances read “unknown” that’s another thing which can negatively impact your credit score. This is the reason you should be looking at your credit report at least once a year if not more. If you have accounts which say things like “delinquent” or “unknown” that is really bad and worse. If you have not been delinquent then you need to be sure that this is fixed. If you know your status with this account you need to make it known to reporting agencies.
Your credit score is your lifeblood for so many things. Get informed!
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