Unexpected Factors That Can Impact Your Credit Score
Unexpected Factors That Can Impact Your Credit Score
You probably know that paying late can hurt your credit score -- but there are other ways your score is at risk. Your credit score influences many aspects of your financial life, so it's crucial to maintain a strong score to secure better opportunities.
Mistakes on Credit Reports
Many consumers find errors on their credit reports, affecting their scores. Regularly check your credit report for inaccuracies and correct them promptly.
Timing of Balance Reporting
Paying off your balance may not align with when your issuer reports it, impacting your credit utilization ratio. Ensure your balance is low when reported to maintain a healthy ratio and boost your score.
Diverse Credit Mix
Having various types of credit, like installment loans in addition to credit cards, can positively impact your score. Aim for a balanced credit mix to demonstrate responsible borrowing behavior.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.