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10 Reasons Why You May Have a Bad Credit Score

Have you ever faced sudden credit scores drop in spite of avoiding unplanned financial activity? If your answer is yes, it does not matter to get bothered at all. Many people in different parts of the globe, including in Florida, face the same issue just like you. Many reasons are there along with unplanned financial activities may burden you with a bad credit score. Explore them from the following part of this blog and check out how professional credit repair service enables you to avoid this unwanted thing.

Reasons Why You May Have a Bad Credit Score

Not Paying Credit Card Bills on the Right Time

Paying the credit card bills on time increases the chances of credit score improvement. Even paying the minimum due amount in the credit card statement, avoiding the late payment charges imposed by lenders get easier. So, be sure to pay your credit bill on time if optimal improvement in the credit score is your aim.

Increase in the Credit Utilization Ratio

All come with a pre-set credit limit that includes the facts like loan eligibility, and credit card limits. The aim of credit card utilization is to check your eagerness to get good credit and your eligibility to achieve it. You may reach the credit-hungry zone, if the credit utilization exceeds 40%. Hence, buying huge-scale purchases might cause a low credit score.

Inquiries Against Loan Applications

Hard inquiries conducted by the banks are not anything new when you apply for a loan. And the banks do so by pulling the credit score which sometimes may cause a less noticeable yet sudden drop in your credit score. Remember, there is nothing wrong with a soft inquiry ( checking credit score on your own throughout the year). Hence, keep keen eyes on your personal credit report and keep updated knowledge about it.

Infrequent Credit Monitoring

Regular credit score monitoring is one of the secrets to maintaining an impressive credit score. So, hire credit monitoring experts who will look for the inconsistencies in your credit scores thoroughly. Credit bureaus provide credit report reviews at least once in a year.

You should keep one thing in mind. Inaccuracies present in these reports impact your credit score badly. So, be sure to deal with the experts who can do this flawlessly.

Not Focusing on Credit Card Limit Increase

The required increase in your credit card limit is a wise move when it is about avoiding lower credit score issues. Doing this assures borrowers can decrease the credit utilization ratio boosting the CIBIL score ( three-digit numeric summary of your credit history ).

Using Many Credit Cards

If you are looking for easy loan options or hassle-free shopping, credit cards are unquestionably relevant. But making purchases using many credit cards might cause backfiring. Also, applying for credit cards from different sources impacts your credit score badly.

High Credit Use

Using over 75% of your credit limit is also a reason behind an unimproved credit score. So, try to keep the usage within a specific limit and get rid of the bad credit score hassles.

Loan Applying Even After Rejection

Making continuous applications on different loan apps won’t do anything effective. Instead, it will impact your credit score badly. When you get rejected after applying for a loan, it gets stored in the credit report.

New lenders will come to know about these rejections and also about the low credit score. As the result, the chances of another rejection will also increase. Hence, if you face this issue, apply for another loan after a certain time.

Not Maintaining a Credit Mix

The mix of relevant and secured loan mixes, including home, car loans against property or others, and unsecured loans, enable people to get a good credit score. If you have many personal loans as a borrower, be sure to prepay the loans and get a proper credit mix.

Short Repayment Tenure

Borrowers are supposed to avoid shorter loan tenure while choosing financial help. Instead opting for a longer tenure will be a better option. It will make sure easy loan repayment at a low EMI. Also, this trick saves borrowers from loan defaulting (failing to pay security, interest, or the security in the loan), and finally, results in offering an improved credit score.

How Credit Repair Service Can Improve Your Credit Score

Now take a look at the ways how this specific service improves your credit score.

Credit score repair solution providers analyze credit reports carefully and determine all the possible issues. After that, they suggest the right ways to sort them out.

Credit repair experts make reports flawless by eliminating all the inaccurate information that hampers your credit score.

These companies enable consumers to fix their inapt credit limits that impact their credit scores badly.

Our credit repair service in Florida will help you get the best benefits of a good credit score, including easier loan approval, better negotiation chances with sellers, lower interest rates, and better credit card awards. We work with expert credit score repair pros who promise to provide the best services to every client at a fair rate.

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