Your credit score indicates your current financial standing. It can make or break future financial opportunities. It’s a critical factor in determining how much you’ll pay for loans and other types of credit. You wouldn’t want a significant event like bankruptcy or foreclosure to damage your credit rating and make getting the loan you need.
Professional credit repair experts like Hughey Enterprises in Chicago, IL, can help you repair and rebuild your credit if you have a less-than-ideal credit history.
We’ve listed four factors that can damage your credit score in this blog post.
1) Missing the Due Payment Dates
Missing the due dates on your payments can be a surefire way to damage your credit score. Your payment history contributes significantly to your credit report, so if you miss multiple payments, it will likely harm how lenders see you and thus damage your credit score.
2) Not Settling and Closing Old Loans
When you take out a loan, it’s essential to make sure that you can make regular payments as per the contract terms. However, sometimes, this may not be possible due to unexpected changes or expenses (such as medical bills). Suppose you find yourself unable to keep up with payments on an old debt, such as a student loan or credit card balance. In that case, your credit score will take a severe beating since these debts will remain open until they are settled and closed.
3) Not Checking on Your Credit Report and Fixing Errors
A good credit report is crucial to your financial health. If you don’t know what’s on it, then you’re not in control of your finances, and there could be errors that have gone unnoticed.
We’ve all heard of massive discrepancies on credit reports. And that is a big deal. If you know there’s an error on your credit report; it can be corrected and help improve your score with time.
4) No Viable Credit Line
Many people think they’re not in the position to borrow money or get approved for a specific loan because their credit is bad. That might be because you don’t have any available credit lines open. You need at least one credit line opened within the last six months to demonstrate active use of existing accounts, making lenders more confident about lending to someone who has been actively using their current account responsibly.
Some financial institutions may require good references from past employers, so would-be applicants should provide this information when requested by the lending authority.
You can count on Hughey Enterprises for credit monitoring and repair services in Chicago, IL. We also help businesses raise funds. Small businesses struggling to get the funding they need can apply now without the worry of submitting lengthy forms and having a perfect credit history.