Thursday, September 15, 2011

Some Reasons That Hurt Your Credit Score III

Cards get maxed out

If you have maxed out and over-the-limit credit card balances it will bring your credit score into the worst situation, which means you have used your full credit utilization.

Balance remain in your closed credit card

Your credit score will drop to zero if you close a credit card that still has a balance. The creditor will consider your credit card got maxed out.

Old credit cards get closed

The length of your credit history is a big component of your credit score which takes 15% of your credit history. If you close your old credit cards, your long credit histories will come to an end, which will affect your credit score somehow.

Closing cards with available credit

If you close the credit cards without balances on the base that some of your credit cards have balances remain and some have not, your credit utilization will rise.

Keep your application to minimum credit cards or loans

If you apply several creditor loan applications in short days, you will have your credit score down. Because credit inquires account for 10% of your credit score.

Mix of credit cards or only loans

10% of you credit score is affect by whether you have only credit cards or only loans. If you only have credit cards or loans, this type of credit account will affect your credit score since you cannot provide long credit history as other credit information.

Some Reasons That Hurt Your Credit Score I
Some Reasons That Hurt Your Credit Score II
Some Reasons That Hurt Your Credit Score III

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