Store Credit Cards Can Hurt Your Credit
Watch out for those stores that want you to buy with their credit cards. They offer 10% off of your entire purchase when you agree to apply for their card but there are several problems with that. The first is that they offer low levels of credit and this means that you do not have excess credit to show and that hurt your score. The most credit that you have used adversely affects your score. So beware of using the department store charge cards.
Stay Away from The Higher Limits on Your Credit Cards
Your credit score is directly determined by how close you are to your limit or the amount of outstanding credit. As a credit repair specialist I often teach about how to keep your credit score up and the biggest way is to stay away from your high limits. Make sure to pay down as much as you can monthly and only use the cards in dire emergencies or on a set monthly budget.
Too Many Inquiries Inquiries Can Lower Score
Most people don’t realize that every time someone checks your credit there is an inquiry associated with your score and the more of these there are the lower your score will go. The best bet is to only provide your social security number when you are set on an auto or home purchase. Make sure that you have decided everything that you want and the price that you will be spending and then allow for a credit inquiry to be done. This is especially true with auto dealers.
Watch The Cosign
We suggest that you don’t cosign but if you do then you make sure that you have control enough to see what is being paid. The majority of the people that have problems with auto cosign was because they did not know that the original signor was not making the payment. They could have easily made the payment the original signor didn’t want them to know that they were having problems. This will tank your credit score with late payments.
Monitor Your Score
So many people don’t check their credit report enough and by simply checking you could have saved yourself a lot of trouble by finding the simple problems or even the major problems before they had a chance to get entrenched in the system and would now be very hard to fix. If you have been denied a loan you are entitled to get a free copy of your credit report by writing the credit bureaus.
Too Many Errors
It is reported that over 70% of all credit reports have errors of some sort and if you don’t know what you are looking for then it can cause you a lot of problems with your actual credit score. You are better off having someone with experience in credit take a look at your report to make sure that everything is as it should be. A credit review is only about $39 and can save you a lot of money in the long run.
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