What 10 Things Will Impact My Credit Score?

What 10 Things Will Impact My Credit Score?

Everything you do with your finances has an impact on your credit score. Some things have a positive effect and others have a negative effect. Here are the top 10 things you can do that will have a negative effect on your credit score.

1.    Applying for an account at a Credit Union as it may cause a “hard inquiry” into your credit.

2.    Using a “business credit card” for your business expenses, which you have personally guaranteed them. Instead, use your own credit card and expense it out.

3.    When you dispute a credit card charge it remains as a credit charge until resolved.

4.    Closing out “old” credit cards can hurt. The credit cards you have had the longest have a positive effect on your credit and should be kept over newly acquired credit cards. Longer is always better with credit.

5.    Renting a car with a debit card will cause the car rental company to run a credit check.

6.    Not paying your parking ticket will hurt your credit as they will be send unpaid tickets to a collection agency.

7.    When you get a new cell phone the company runs a credit check on you.

8.    Asking your credit card company for an increase in your credit limit as it is seen as new credit and initiates a credit check. If they give you an increase without you asking that is ok.

9.    Not using your credit card and allowing them to sit in your wallet or purse. It affects your “credit utilization” ratio and will lower your credit score.

10. Using the finance plans offered by stores for a major purchase like a refrigerator should only be used as a last resort.

One of the key components of buying a home is good credit. Avoiding things that will have a negative effect on your credit score is important. Use the previous items to ensure your success in buy a new home.

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