Your credit score is a great tool to get better loans and credit cards. In order to have a great credit score though, you have to know what might hurt it.
Factors that have a negative impact on your credit score
There are a few factors that can negatively impact your credit score, but the most common ones are:
- Applying for various credit cards
If you apply for various credit cards in a short amount of time, you’ll get a lot of hard inquiries, which will hurt your credit score in a negative way.
- Missing payments
This is important because not only will it affect your credit score, but you will also have to pay interest for not paying at least the minimum required.
This factor is often ignored by people, but it can also have a negative impact on your credit score. It is recommended to keep your utilization under 30% at least, being a sub 10% utilization the best practice.
If you have any doubts regarding your current credit score, you can go to our website and check your credit for free.