Credit score is an important part of the financial responsibilities of any man. A good credit score can help you save a lot of money with respect to installments and interest rates. Remember the fact; better your credit score, the less you have to pay as interest rates. Hurting your credit score is not a good thing at all. Bankers, credit card companies and other loan companies evaluate this credit score to decide the risk of lending money to users. It is also very helpful in determining interest rates and credit limits. Certain things that can hurt your credit score are as follows-
Late payments
Late payments are one of the most important reasons behind a low credit score. Being late on credit card payments is a major drawback considered by bankers and credit card companies. A late payment on loans and credit cards is a big no-no for your credit score. Always remember the fact that your credit score depends on thirty five percent of your payment history.
Numerous credit requests
This is second most important point that can actually hurt your credit score. Asking for too many credit requests is no good for your credit score. Applying for too many credit cards, mortgages, loans at the same time or frequently gives a wrong message to the credit bureaus and can considerably drop down your credit score.
Owing many credit cards
Owing too many credit cards do not show that you are financially very strong. This drops down your credit score to a great extent. It gives the message that you are on the verge of debt or whether you would be able to repay all the money back. It shows that you can are tempted to take credits frequently which does not give transparent information about your financial status.
Mortgages and liens
Keeping your house for mortgage or being liable for any government lien can drop your credit score. It gives an impression to the creditors that you are not in a state to pay payment in time. This kind of liens or mortgages can hurt your credit score to a great extent.
Being too much in debt
Being in high debt will hamper your credit score to a great extent. This questions your inability to pay back amounts within time. Creditors will use this against you with respect to loan approvals or fixing interest rates for you. So avoid being in high debt and try to pay your due amounts within time.
Unemployment
Unemployment is considered to be one of the biggest factors that influence your credit score. Banks and credit card companies are not aware of the employment status, what they are aware of is the reduction in your income which is not good for your credit score. This can make them confuse about the ability of your pay.
Apart from the above written reasons, other reasons that may drop down your credit score are not checking your credit reports, not using legal names in all your financial documents or closing credit cards with balances leftover in it. Asking for payday loans, car loans or any other loan is not a problem when you have a good credit score. You can easily get loans for payday through Lenderlist without any hassle. This is one of the most reliable sites in UK that will help you to get a loan with no brokers involved in between. Getting a loan is easy if you have a credit score that impresses the credit bureaus.