If you ask most of the people what they need to maintain a good credit score, probably they will say that you need to pay your bills on time and carry little debts as possible. Some of the small factors that people tend to ignore whereas they matter a lot in your credit score.
Unpaid private debts
Most of the people ensure that their utility bills, credit cards and mortgages are paid with consistency but they still ignore small private debts. They intentionally ignore the debts convincing themselves that they are illegitimate. A good example is the issue of unpaid parking tickets and library fines; the municipalities do not report such issues to credit bureaus. The truth is any unpaid debt no matter the amount can pull down your credit score.
Some people assume electricity and gas bills since they are not loans. You are definitely mistaken since your credit score will lower if you fail to pay such bills. Such companies can ruin your credit score by reporting any delinquent accounts. Therefore, you should be prompt in paying your bills if you need a good credit score.
Many credit applications
Credit cards have a lot to offer to your businesses thus you may be tempted to sign up for many credit cards so that you can get. You may gain a lot of points and grant in-store discounts when you apply for many credit cards but the problem comes in due to the many credit checks you will have. The credit checks will negatively affect your credit score within a short period. You should avoid applying for many credit cards especially if you need to purchase a home, car or you require a student loan.
Business credit cards
Having and using your business credit cards does not cover you from being responsible of your debts. Remember, any payments made using your credit card is reported to your credit bureaus. In case, you default paying debts in the name of your business, your personal credit will be affected negatively.
Incorrect information can be a threat to your credit score. Mistakes can be caused by typos and clerical errors or similar names. You may find that another person’s information has been fed to your file. Consumers should ensure that they fill the soft inquiries regularly and raise disputes in case of any mistakes.
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