You can’t avoid poor credit if you don’t know what it’s been caused by. But there are a couple of very common reasons that can cause a poor credit rating for you:
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Late Payments
It’s pretty easy to forget about making a payment of your bills but people are usually uninformed about how late payments can negatively affect their credit. Just a couple of late payments each year can have drastic effect on your credit score.
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Falling behind on major payments for loans and mortgages
A major cause for poor credit is being unable to pay major payments for loans & mortgages. Your credit rating can suffer a huge setback if you’ve a major payment due and you’re unable to pay it.
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Misuse of credit cards or failing to pay small bills
Misuse of credit cards can also be a major reason for poor credit rating. Also, if you fail to pay small bill such as the telephone bill or the television (cable) bill, then even these small payments can do a big damage on your credit rating.
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Missed Payments
Before giving credit, lenders usually look at this clause to establish their trust in you. Make sure that don’t miss out on paying even a penny.
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Bankruptcies
The biggest reason for your poor credit rating can be bankruptcy. As it stays on your credit report for a couple of years, it can make your life very difficult. It can even cause you troubles in applying for the bad credit auto finance. If you want to live a happy life then this is one thing that should be avoided at all costs.
-
Credit Inquiries
Many people don’t know that everytime they apply for credit, their credit score takes a hit. A couple of credit inquiries every now & then don’t hurt as much as frequent requests for credit do.
You can’t avoid poor credit if you don’t know what it’s been caused by. But there are a couple of very common reasons that can cause a poor credit rating for you:
-
Late Payments
It’s pretty easy to forget about making a payment of your bills but people are usually uninformed about how late payments can negatively affect their credit. Just a couple of late payments each year can have drastic effect on your credit score.
-
Falling behind on major payments for loans and mortgages
A major cause for poor credit is being unable to pay major payments for loans & mortgages. Your credit rating can suffer a huge setback if you’ve a major payment due and you’re unable to pay it.
-
Misuse of credit cards or failing to pay small bills
Misuse of credit cards can also be a major reason for poor credit rating. Also, if you fail to pay small bill such as the telephone bill or the television (cable) bill, then even these small payments can do a big damage on your credit rating.
-
Missed Payments
Before giving credit, lenders usually look at this clause to establish their trust in you. Make sure that don’t miss out on paying even a penny.
-
Bankruptcies
The biggest reason for your poor credit rating can be bankruptcy. As it stays on your credit report for a couple of years, it can make your life very difficult. It can even cause you troubles in applying for the bad credit auto finance. If you want to live a happy life then this is one thing that should be avoided at all costs.
-
Credit Inquiries
Many people don’t know that everytime they apply for credit, their credit score takes a hit. A couple of credit inquiries every now & then don’t hurt as much as frequent requests for credit do.