3 Things You Didn’t Know Harm Your Credit Score
Using an auto loan to purchase your next car is a great way to get yourself into the driver’s seat without spending all of your money at once. You most likely know that in order to qualify for a loan with low interest rates, you must have good credit. Florence Banking Rates is committed to finding those exceptional auto loan rates for you, but first, be sure your credit is in good standing. There are some unusual factors that can negatively impact your credit score and you may not even be aware of them. You will build yourself better credit by avoiding these three mistakes:
- Closing cards and accounts: You may think you’re being responsible by eliminating unnecessary credit cards and accounts that are racking up fees and further exposing you to debt. Unfortunately, creditors not only consider how much debt you possess, but also how much debt you have in comparison to your total available credit. Having available credit with a low balance will enhance your overall credit rating and closing accounts will only diminish your debt to credit ratio.
- Returning your library books late: Overdue returns and other fees associated with your library card are sometimes reported to credit bureaus. Though such an offense is generally mild, continuously incurring fees can take away quite a few points over time.
- Not paying your parking tickets: Local governments can send your unpaid parking tickets to collections agencies who will in turn report late payments and non-payments to credit bureaus. Unpaid parking tickets that are reported to such agencies can have quite a dramatic effect on your credit score.
