In this article we will consider the things that people often do which have the result of worsening their credit score.
If you follow the advice in this article you should be able to avoid those mistakes.
Get rid of credit or store card accounts that you no longer use.
It is easy to put an old card in a drawer but still keep the account open.
This will have the effect of making it look like you have more types of credit than you actually do.
This can worsen your credit rating.
The other benefit of closing accounts and getting rid of cards is that you will be to resist the temptation to use them again in the future.
Beware making too many inquiries for credit.
Every time you make an inquiry with a different lender a search is performed on your credit score.
If a lender sees that you have made a lot of inquiries it can look as if you are desperate for credit.
This can adversely affect your credit rating.
Another thing very few people are aware of is that taking action over one debt does necessarily have a huge effect on your credit score.
It is really impossible to know exactly how your score will be affected.
The best and simplest way of keeping your score sound is to maintain your credit at sensible levels and with a minimum number of lenders.
Do not make the mistake of assuming that if you have no borrowing or debts your credit score will improve.
Although this sounds like a contradiction the fact is that a credit score will often be better when a person has one, two or perhaps three debts which are sensibly managed.
Lenders can see that you have a responsible attitude towards debt and are able to manage it successfully.
If a person has no credit or borrowing at all it is impossible for lenders to know how much of a risk you will present when you actually do borrow.
Do not ever lie or do anything illegal connected with your credit score.
It is very easy for this to be discovered by lenders and you could face serious actions.
All of the above are mistakes that people regularly make when dealing with their credit score.
The best advice is just to be sensible and do not try and fiddle the system in any way.
A considered approach to your borrowing will see your credit score improve naturally over time.