There are dozens of ways to blow your credit score out of the water. Having a car repossessed or a home foreclosed on are easy enough items to identify, but the most common credit eroders are more subtle. Here are three everyday ways to lower your credit score.
If you rent a car with your debit card, you will hurt your credit score. Why? The rental company will perform an inquiry into your credit. Since each inquiry temporarily lowers your credit score, you could lose up to 20 points in the short term.
Closing a credit card that has a zero balance is tempting. After struggling to pay off the balance, it can be tempting to say so long to it, but closing the account will make your debt to credit ratio higher and could shorten your credit history on paper. Both ding your credit score.
Buying new furniture is always exciting. Using the financing offered by your local store can be hard on your credit report. Since all debt is nor created equal, local merchant credit is scored less favorably that credit card debt, which is, in turn, scored less favorably that a car loan or mortgage.
There are dozens of factors involved in an excellent credit score. Too many in fact to list in a single article, so keep looking back here for more pointers. Hopefully, if you take these recommendations to heart, you won’t ever need to work with an AZ credit counseling agency.