Things that can affect your credit ratings
If you are assuming to have a good credit ratings and you never bothered to check it, you might enter into a nasty surprise once you check it out. It’s not simply taking care of your payments and keeping check on your borrowing behavior. There are other things as well which can have a surprising effect on your credit history. Let’s look into the things which may affect your credit score
Use of Debit card to rent a car
If you pay an amount from your debit card for a rented car, most probably the rent-a-car company will do a credit check on you. As many times, the company will do a credit check, every credit check will take off a point of your credit score.
Possession of a company credit card
If the company gives you a credit card then you should be aware of the fact that it can affect your credit score. Mostly corporate credit cards have joint names and they are equally liable for the credit you take. It is important to bring into consideration that if the company pays the bill late, your credit score will be badly affected.
Pay your parking ticket late
Getting a parking ticket is an unfortunate event and we don’t like it much. However, paying for the ticket is hated by us all. That is the reason so many people don’t bother to pay it unless it’s a last minute. If you don’t pay it on time, the debt will be passed to the debt recovery company and that will affect your credit score badly.
Not returning the library book
It may seem simple and ordinary but if you don’t take back the library book and you get fine on it then it can also be recorded in the credit history. If you are unable to pay the fine back, the local authorities are real quick in sending your data to debt Collection Company that will knock more points of your credit score.
Getting reminders on utility bills
If you don’t pay your gas and electricity bills on time, these power companies are quick to send reminders to pay the amount as soon as possible. If you don’t pay the amount within specific time, you will get a letter from debt Collection Company that will further affect your credit score.
Paying back your loan earlier
Even if you pay back your loan earlier, that doesn’t help to improve your credit score. As you pay the amount it seems like you saved some of the interest payments.
Underutilizing your credit card
Lenders are always look at the way you spend your credit. They want to ensure that you spend them wisely and manage your debts responsibly. If you have some credit available and you never use it then it becomes hard to judge your ability to manage debt credit if you never had such experience. It is always better for your credit rating to use some of the credit available and then pay back your pending amounts on monthly basis.
Enquiring about loans
Enquiring about a lot of loans and getting quotes on loans will also knock your credit scores of. It is to note that any hard credit check will further decrease your credit score for the period of two years.
Never dispute an item on your credit card
If you dispute an item on your credit card statement and your lender looks into it then it will also be considered as the unpaid debt and further deteriorate your credit rankings.
The best and most effective way to ensure what has been registered against your credit score is to get registered with one of the credit score management website. It will greatly help you in understanding your credit score ratings and also if any unpaid debt needs to get cleared on urgent basis.