Credit Repair Philadelphia PA
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What Hurts Your Credit
Living in the US, good credit is imperative for getting loans and employment opportunities. That’s why it’s important to know which things could be hurting your credit score. Here are some of them:
- Late Payments: If even one of your payments is late for over a month, your credit score might go down.
- Hard Enquiries: Whenever you apply for a loan or a mortgage, the lender will conduct a hard inquiry on your account. Every subsequent inquiry hurts your credit, even if you’re not approved for the loan.
- Not Paying Bills: Besides your credit card bills, paying all your utilities on time is also important. Late rent or utility payments impact your credit negatively.
- Canceling Zero-Balance Credit Cards: Do not cancel your credit card even after paying the debt. It affects your credit score by shortening your credit history’s age and raising the credit utilization ratio.
- Low Credit Diversity: Having only one credit card can be problematic for your credit score. Instead, have a mix of installment and revolving credit types to improve credit.
- Co-signing Applications: If you co-sign the credit application of a friend or family with poor credit, you’re basically taking their debt’s responsibility, and that impacts your credit negatively.
- High Credit Card Balance: A credit utilization nearing your credit card limit could hurt your score. Maintain a utilization ratio of 30% of the total credit.
If you’re struggling with a low credit score and its negative effects on your life, call our Philadelphia credit repair specialists today for a free consultation.