Don’t say we didn’t warn you! Be aware of these (seemingly small) things that can really impact your credit score.
We’re all familiar with the basics of credit scores and the unsurprising things that have an impact, you know the deal, excess of lines of credit, unpaid bills etc. But there are some less obvious (some might say sneaky) things that can creep up on you and hit you where it hurts – your credit score. The following factors can have a negative impact and shouldn’t be ignored.
1. Closing credit cards that have a good repayment history
Can’t beat that credit-card-paid-off feeling! It’s a definite cause for celebration. But, hold the champs for a second, because sometimes closing a credit card you’ve had a great record of paying off on time can affect your score. That’s because this strong track record of repaying a debt looks favourable to lenders. When closing this line of credit, while it can take a few months for it to be cleared from your finances, it essentially means there’s less evidence in your favour when the all important loan applications come back around.
2. Not updating your details
One of those life admin tasks that can fall by the wayside, keeping your name up to date keeps your finances in check and is a good move, credit score-wise. If you’ve changed your name, or been divorced, you need to be sure all of the relevant parties are aware of the update. The credit score attached to your previous name may strengthen your score, or your partner’s late repayments may be bringing your score down – it these kinds of things that have an impact.
3. Not regularly checking your credit score details
Your credit score is one of the most important scores you’re shooting for. It’s one of those things you should check-in with frequently, so small problems don’t snowball. By not regularly checking your credit score details, you may uncover a nasty surprise when you do eventually check. Unchecked credit details may be riddled with mistakes that are costing your credit score. Even worse, you may have had purchases made in your name that you were none the wiser to! The bottom line? To keep your credit score at its best, you need to stay on top of it.
To find out your credit score, check Credit Savvy.