ABOUT US
SERVICES OFFERED
TESTIMONIALS
FAQ
CONTACT US
BLOG
CREDIT360 BLOGS
Common Oversights That Can Impact Your Credit Score
As important as it is to have a good credit score, credit is something that we commonly overlook. As a result, our oversight can cause lowered credit scores without even noticing. Here are a few common oversights that can impact your credit score!
Having No Credit Score While having no credit is the safest way to avoid debt, it is also an anchor when making large-scale purchases. When you have no credit, you can’t build good credit, which causes lenders to have trouble trusting you when you want to purchase things like a car or house. If lenders can’t trust you, you are faced with making purchases in full
which is a timely and expensive process. And since we live in an unpredictable economy, housing prices and loan rates vary throughout the years, thus, making it extremely difficult to make large purchases in full. While avoiding credit to avoid debt sounds like you’re living on the safe side, you are also putting yourself in a ABOUT US
SERVICES OFFERED
TESTIMONIALS
FAQ
CONTACT US
BLOG
situation where you’ll run into trouble. Having credit is good! But you have to be responsible with how you use your credit to maintain a good credit score.
Applying For Too Much Credit It’s easy to apply for new credit loans, especially when there is a tempting sign-up offer. However, frequently signing up for new credit cards and receiving rejections along the way will result in losing points from your credit score. That is why it is crucial to make sure that you will qualify for a credit loan before applying to one or multiple loans. Suppose you apply for a loan, wait to see if you receive approval before applying for another one. One rejection can cause you to lose up to five points on your credit score. So if you receive multiple rejections around the same time, your credit score can drop drastically. On the bright side, credit rejections will remain on your credit report for up to six months. Still, if you need a good credit standing for a particular upcoming purchase, you may encounter some difficulties from the lenders.
Missing and Late Payments Forgetting about an upcoming payment is very common, especially when living such busy lives. But did you know that payment history makes up 35% of your credit score? That means that just one missed or late payment can seriously impact your credit score! Even when you make the payment, it will show up on your credit report as a delinquency date, indicating the missed payment date, which will stay on your report for seven years. It is crucial to make payments on time, even if that means paying the minimum amount. Paying the minimum will still affect your credit score to an extent but can be quickly resolved compared to missing or making late payments, which will stay on your credit history for lenders to see. The best way to stay on top of your bills is to set up automatic payments with your chequing accounts to make payments on time. Along with setting up automatic payments, schedule email and calendar reminders of when payments are due. You can also download the Credit 360 app, designed to set reminders for when bills are due, so you never have to forget a payment again! However, if you still forget to make a payment, immediately contact the associated company to arrange a late payment. Most credit companies report late payments after 30 days, so your credit score is less likely to be affected if you contact the company within 30 days after the missed payment date.
Not Paying Balances in Full
While missing and late payments drastically impact your credit history, not paying your credit card balances in
full can also drag your credit When you’re only making the minimum payment, allow the remaining ABOUT US score.SERVICES OFFERED TESTIMONIALS FAQ youCONTACT US BLOG balance to be carried over to the next month. Along with the carried-over balances, your interest fees and the minimum amount will increase with each billing cycle. Eventually, you will find yourself paying more money to the institution’s fees rather than paying and maintaining the credit you’re using. By continuously paying only the minimum payment, your credit score will be negatively affected.
High Credit Utilization Although credit cards come with a credit limit, it doesn’t mean exhausting the funds to the maximum limit! Credit utilization determines 30% of your credit score! Meaning you need to pay attention to how much of your available credit you’re using to maintain a good credit score. Credit utilization measures how much credit you use in ratio to how much credit you own overall. For example, suppose you own one credit card with a limit of $6000 and used $1000 and another credit card of $4000 and used $2000. In that case, your credit utilization will measure the total amount of credit used on both cards in ratio to the total credit cards limit. As a result, the credit utilization looks like $3000:$10,000. Credit bureaus recommend keeping credit utilization under 30% across ALL financial products to ensure credit score is in good standing. Having a high credit utilization indicates that you are dependent on credit which lenders may see as a risk resulting in higher interest rates when asking for new loans.
How Credit360 Can Help You While we’ve listed five common oversights that can impact your credit score, there are plenty of oversights that we did not mention that can still affect your credit. Luckily, Credit360 does a complete credit report analysis that reviews anything and everything that impacts your credit score. It is crucial to check your credit reports to ensure all information is accurate and up-to-date. There could be minor errors like incorrect personal information such as your name, address, and date of birth. Or significant errors, like unknown accounts that are opened under your name, previously closed accounts that are still open, or owing balances that are already paid. Our team of highly qualified credit repair consultants will do an in-depth credit report analysis to pinpoint what is impacting your credit score and immediately find a solution to fix your credit. All you have to do is sign up for a consultation with Credit 360, and a credit repair consultant will automatically be assigned to your case. From there, the credit repair consultant will actively fix your credit by removing or reducing any information on your
credit report that brings your credit score down. So avoid waiting years for your credit score to gradually increase by choosing Credit360 because we believe in creating the life you deserve as swiftly as possible. Written By: Indojaa Sathiyaseelan ABOUT US
SERVICES OFFERED
Previous Post
The Pros and Cons of Owning Credit Cards
TESTIMONIALS
FAQ
CONTACT US
BLOG
Next Post
How Bankruptcy Affects Your Credit Score
You will speak to an experienced credit repair specialist who will review your personal case and circumstances. I M P O R TA N T L I N K S ABOUT US SERVICES OFFERED TESTIMONIALS FAQ CONTACT US BLOG HOU RS
Monday
10a.m. – 6p.m.
Tuesday
10a.m. – 6p.m.
Wednesday
10a.m. – 6p.m.
Thursday
10a.m. – 6p.m.
ABOUT US
SERVICES OFFERED
Friday
10a.m. – 6p.m.
Saturday
Closed
Sunday
Closed
TESTIMONIALS
FAQ
CONTACT US
BLOG
CO N TA CT U S Credit 360 Address: 50 Minthorn Blvd, Suite 100, Markham, ON L3T 7X8 Phone: 1 (866) 654 0679 Email: info@credit360.ca
© 2021 Credit 360. All rights reserved. Privacy Policy