5 Strange Things that Impact Credit Scores

There are several ways for consumers to protect and stabilize their credit rating. Unfortunately, most people don’t know they exist. In fact, these steps can be so unintuitive that they are often misused with negative consequences. Here is a list of 5 weird things that can affect your credit score.

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1. Accept loan offers

Consumers who regularly take advantage of loan offers that appear in advertisements and sales will see a steady decline in their credit score. The reason is that whenever a lender makes a loan offer, they have to do an in-depth study of their creditworthiness. Doing this investigation automatically reduces the yield a little, and the maximum number of requests allowed will also decrease. If the consumer refuses this offer, they can maintain the results and protect their number of inquiries.

2. Avoid credit

A common misconception is that not using credit cards or debt is a way to get a high credit score. Unfortunately, this is not the case. For non-credit consumers, a lack of credit information can result in a lower score due to a lack of reliable information to rank higher. The way for consumers to increase yields is by providing a combination of good credit products

3. Close unnecessary accounts

With any open credit account, consumers need to be careful not to overpay. When they spend, their credit rating goes down. Users have found that it is much easier to have a small number of higher usage cards than to have many low usage cards. By closing unnecessary credit card accounts, consumers can better track their usage for best results.

4. On top of consolidation

While it is advisable to consolidate their debt into fewer cards, it is easy for consumers to go too far. Instead of having multiple cards with small balances, they transfer those balances to a card with a better interest rate. But the payoff is still bad if a card, even if it is the only card, runs out. After consolidation, it is important for consumers to reduce the balance on their cards to meet usage restrictions, otherwise they will suffer.

5. Report bugs

Surprisingly, it is not uncommon for consumers to find errors on their credit reports, some of which are quite significant. To ensure the full validity of their reports, users are encouraged to submit a free credit report every four months to review their bug reports. If someone is found, it is helpful to report them for an accurate and valid credit rating.