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"Bankruptcy was a turning point in my financial life. I feel that I have turned a corner and will not make the same financial mistakes again. "
~John - Portage Inlet

"I should have come to see you years ago. "
~Michael - Colwood

2014-06-09 16:12:02

4 Things That Can Ruin Your Credit Score

In today’s world credit is king, and you have to be careful with your credit rating.  Many people damage their rating through completely preventable things. Below are five common ways that people damage their credit rating without even realising.


  1. Shouldering too much debt
    No matter what you earn, there is a cap on the total amount of debt you can be in.  Even if you are making all of your payments, a large amount of unpaid debt will lower your rating and make it difficult to get more loans


  1.  Not paying debt off quickly enough

 While longer plans with smaller payments may seem attractive to your monthly budget they can damage your ability to borrow more. If you carry the balance of a debt for a long time it indicates you have problems paying it off and this lowers your creditworthiness.


  1. Getting too many credit checks

Every time someone checks your credit it is assumed you are applying to borrow money or finance a purchase.  If your credit is checked more than twice in a year it raises red flags as to why you require so much new credit in such a short period of time.

4. Not using credit cards

No credit is almost as bad as bad credit.  If you aren’t paying bills to someone who is reporting to the credit agencies then there is no history for a potential lender to look into.  Without a history they have no idea if you are a risk and as such are less willing to lend to you.  Get one card and use it for a specific thing, like gas or groceries, and pay it off every month.  This gives you a positive credit score so that when you wish to make a larger credit application ( like for a house or car) you are more likely to be approved.