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Credit Repair

5 Common Issues That Will Lower Your Credit Score

If you have read this blog you have seen plenty of posts giving you a few items that will lower your credit score. They are all good points. There are so many posts because there are truly so many things that affect your credit score, many of which seem innocuous when you do them. Here are five more that you should keep in mind on a regular basis.

Let’s start with opening multiple accounts at once. This one has probably been mentioned quite often, but it can not be over stressed. Each application, approved or not, requires a ”hard pull” on your credit report. Each hard pull lowers your credit score temporarily. Also, opening multiple accounts can make it appear that you are desperate for money, thus lowering your creditworthiness to banks if you apply for an auto loan or mortgage shortly after opening the new accounts.

Missing a single monthly payment can lower your credit score 100 points. That is the difference between excellent credit and sub-prime to many lenders.

Closing an old account. Old accounts show a long term credit history that improves your overall credit score. You should keep it open and charge an occasional tank of gas, then pay it in full.

We often have multiple cards, but tend to use one frequently. Even with multiple credit accounts, maxing out just one can lower your credit score. Try to keep the balances on each card less than 30% of the credit limit.

Are you one of those people who never checks their credit score? Huge mistake. Even if you get approved for credit when you apply, there can be mistakes on your credit report that are costing you a higher interest rate on each credit line. Check your score once a year and just before applying for a new auto loan or mortgage.  If necessary, you may want to look into credit repair for auto loans or credit repair for mortgages.

In modern life, credit is a necessary evil. You have to remain diligent in order to make your life as easy as possible. Making these common slips with your credit score can cost you more than you imagine.

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