Common credit score mistakes to avoid

We all want to have a higher credit score and for this purpose, we pay our bills on time and manage our finances in an efficacious way. However, we still have a poor credit score because unknowingly, we make such mistakes that are perilous for our credit score. Let us see what those mistakes are and how to avoid them:

Closing old accounts when it is not required:

Lenders want to see your experience with the credit before they decide to lend you money. So, they have a look at your all current and previously owned credit cards. Many people close their old accounts because they don’t want to pay the annual fee. This might be a good idea but it gives the lender no information that makes them believe that you have experience with credit cards in the past. 

Never close your old accounts as they count in your experience. If you want to have your credit accounts handled seamlessly, consult APICKLE.

Applying for a huge amount of credit:

There might be many lucrative offers that you would like to avail yourself of by signing up for multiple credit cards at a time. Applying for too many credit cards at a time has a very negative impact on your credit score. The lender takes it as a red flag from your side. In addition, the more cards you reply for, the more likely it is for you to get rejected. More rejections also impact your credit score. 

Never apply for too many credit cards at once. Wait for the one that is beneficial for you and also carefully examine how it will impact your score. 

Ignoring the credit report:

One of the common mistakes that people make is ignoring their credit reports. Many people rely on credit bureaus who review the report and generate the result. However, it is even more important for people to review their reports themselves. 

You should get 3 credit reports from official sources and if you find any error in the report, report the issue to the bureau. 

Not using the smart way to close the credit card:

Although it has been advised above, it is better to not close the credit card. However, sometimes it is essential to do it. In this situation, you can use a smart way to get it done.

Before you close the card, make sure that you pay the remaining balance on the owed card and cancel the recurring payments. If you cannot pay off the remaining balance, move some credit from your other account to the account you want to close and then payback. Also, confirm that your balance is zero when you go for closing. 

Not paying the bill on time:

We all know that paying the bills on time contributes to maintaining good credit. Sometimes we are lazy and therefore, miss the payment. 

Don’t be lazy and pay your bills on time. If you borrow money from anyone, return it in time