Things You Never Expected That Lowered Your Credit Score
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A good credit score is probably one of the most important numbers in a person’s life, especially when it comes to managing his finances. A credit score can sometimes become a determining factor in a person’s loan application.
For instance, if you are planning to buy a new house, or a new car, you will find yourself checking your credit score. While you already have a general idea of how the credit score works, you may be unaware that there are some things that you may have already done that had a negative effect on your credit score.
For instance, closing your old credit card can possibly affect your credit score negatively. These old cards have probably been with you for more that five years and with that these cards probably have the most information about your credit history. By canceling your old card, you are possibly removing years of good credit history, which could end with you having a lower credit score.
Another example when your credit score could be negatively affected is when you shop around for low interest rates for a loan. For instance, if are looking to buy a house and are “rate shopping.” In this case, the credit bureau will treat several credit checks as one, as long as these checks were done in, say 45 days (for a FICO score). In order to prevent a negative impact on your credit score because of your “rate shopping,” it would be best if you can limit it to 2 or 3 weeks, just to minimize possible inaccuracies.
