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What Affects Credit Score Negatively? (Wild Cards)


What Affects Credit Score Negatively?(Wild Cards)

There are obvious and non-obvious reasons that affects credit scores negatively. The seen records that gives poor rating are generally: Skipping payments, late payments, too many accounts, bad credit history, debt review, etc.

Then you get the unseen factors like: Someone stole your identity, closing older accounts, having no credit history and job hopping much too often.

(Check Your Latest Credit Score Here!)

(Can you go to jail if you can't pay your credit cards?)

Generally payment history defines your trustworthiness. But who would think that having no accounts at all; or paying up everything too soon, would have negative consequences going forward.

Although that puts you in a predicament; especially if you're trying to finance a new car, secure startup capital, or house. Only to discover unexpected barriers in you way.

Like You Discover:
  • Your financial reputation is ruined by billing mistakes from one of your creditors.
  • You find that you being penalized for having too many accounts; which you never applied for - A very common experience in identity theft.
  • On the other hand you may think you're considered financial healthy. Only to later discover they find a few inconsistencies on your payment history.
You Can Avoid This By:

Do regular checkups on your latest credit reports, to eliminate the chances of bad surprises; when the need arises.

Protecting sensitive information not only from strangers, but also love ones that are more likely to take advantage of your emotional spending limits.

Avoid situations where you have to delay payments to gather extra cash for long weekends, gifts or holidays.

Don't Pay Debts: With borrowed money from other loans to make ends meet. Which shows the first cracking signs of your poor money management skills.

What Makes Credit Score Go Down?

Apart from billing errors, credit card fraud cases, or impostors opening illegal accounts under your profile. Opening new accounts, returned debit orders, cancelled debit orders, increases in your debit amounts, closing all your accounts and a debt review status can drop your credit scores like a ton of bricks.

Any sudden changes to your existing credit rates, or even too many loans can easily affect your sensitive ratings. Which can heavily defeat the chances of you obtaining a home loan, vehicle finance or even get your dream job.

(Check Your Latest Credit Score Here!)

When it comes to maintaining your credit score. You have to keep a moderate balance between the two extremes of: Having too many accounts or non at all. If you lean too heavy over one of the extremes it can negatively impact your credibility.