Factors You Didn’t Know Could Ruin Your Credit Score

Podcast Show by Radhe Shyam

Your payment history is one of the key factors that affects your credit score, even though there are other contributing factors. Most people don't know all of these important facts, and they wrongly believe that simply paying bills on time can raise their credit score.

Factors That Affect Your Credit Score Negatively

Applying For Credit Cards/Loans Too Frequently

Your credit score may suffer if you apply for too many credit cards or loans in a short period of time. A "hard inquiry," which can harm your credit score, is made every time you ask for credit. It is better to keep your credit applications to a minimum and give yourself some time in between each one.

Utilization of your credit limit

Your credit score may be affected by how much of your credit limit you use. Lenders may conclude that you are using a significant amount of your available credit, or high utilisation, and may be more concerned about your likelihood of default. As a general guideline, try to keep your credit utilisation at no more than 30% of your available credit.

Missed or late utility bill payments

Utility companies frequently notify the credit bureaus of missed or late payments, which can negatively impact your credit score. To keep a good credit history, it's crucial to pay all bills on time, including electricity bills.

For more information refer to: https://cardinsider.com/blog/factors-you-didnt-know-could-ruin-your-credit-score/