4 Unexpected Things That Lower Your Credit

     These days, it is more important than ever to maintain a good credit score. Whether you are planning to buy a home, financing a new car or even sign up for a new mobile subscription, your credit score follow you almost anywhere you go. While most of us know the basics of how our credit rating and working relationships and how to build, improve or repair our scores, you may be surprised by some of the things that could have a negative effect on your credit score.

Closing an old credit card

     It is not uncommon that people have credit cards, which can be 10, 15 or even 20 years. These cards are probably one of, if not the credit cards have never registered before. With credit card companies constantly searching for new incentives to encourage us to sign other cards, these cards are the parents most likely will not offer much more than the bare bones when it comes to bonuses or stock options. Since most people prefer to earn rewards points or cash back credit on their purchases, older, less practical papers, probably ultimately from the bottom of the back of your wallet or purse collecting dust.

     For those who want to get rid of some excess plastic, these old cards seem logical candidates for deletion. Well, not so fast. My parents have the longest credit cards and payments, and therefore cannot be greater than anticipated impact on the overall credit score. Removing the potential positive credit history, cancel the old card, your credit score can actually end up weakened. Discover cards relatively more recent, you cannot have great utility, and think of those clear, first to get rid of the "old reliable."

Shop for a better price

     If you are considering buying a home, you naturally want the best rate you can get, but you do not want your credit to get rung every time you sit down with a loan officer at a bank. It's a common misconception among the general population, one that most lenders are not completely out of their way to fix it. The truth is, for cases where an applicant is a "commercial rate" multiple credit checks will actually be processed by the credit bureau as a single check as long as control is made within a reasonable time (45 days for the FICO score). It is probably better, but limits your purchases to about two or three weeks to reduce any inaccuracies.

     Found that the new information does not change the old adage about the normal appearance of credit. People who are looking for a revolving credit, such as credit cards are not eligible, except single control, since, in theory, the individual can be approved for credit cards, including may not be able to withstand. People buying a lower rate mortgage, however, in most cases, do not give multiple mortgages. So go ahead and get the best rate you can on a mortgage or car loan, but do not jump from one lender to find a credit card interest rate.

Transfer of the debt at a lower rate card

     You go through your mail and saying there is an envelope that has been pre-approved for a new credit card with a limit of high and low introductory rates. Better yet, the card company has no interest in coming for the next months on balances transferred through their credit cards. It's easy to get carried away, thinking about the day of trouble making payments on five different credit cards. You can transfer all your credit card debt from one card and save on interest over the next few months while you pay your debts, but should you?

     It is not as simple as you thought. If the balance on the card again ends up almost 80%, 90% or even 100% of card limit, the newly consolidated debt can actually reduce your credit score. Debt limit of the ratio is greater than 50% of credit card or line of credit, a wake-up call to the Bureau meeting, which can lead to credit scores down. In fact, take a five-card with a balance to limit ratio of about 20% is usually better than a card, which is nearly maxed out. To avoid seeing the score to drop, to try to maintain a balance of less than 30% of the limit and your credit score is good. (An additional fee, processing rates, read Understanding Credit Card Interest.)

Fitness centers, texting and Library Fees

     Credit cards, mortgages and student loans are the things we expect to find in our credit reports, but what about late fees gym, cell phone bills and the cost of the library? Today, more and more companies and municipalities are reporting outstanding debt to the credit bureau, either directly or through a collection agency. Cases of people with thousands of dollars in unpaid parking tickets or unpaid month contract forgotten gym membership appear in credit reports and credit scores, then the reduction have become increasingly frequent. So do not think you can get away with not paying for this copy of "Atlas Shrugged" borrowed from the local library and never came back. (More information about the delay in payment of bills affects your credit with credit works how crime maps).