5 Things You Didn’t Know Hurt Your Credit Score

5 Things You Never Knew Hurt Your Credit Score

#3: Transferring Balances From One Card to Another
If ever you’re wondering how do balance transfers affect credit score, then this section can provide answers. Credit scores are calculated by comparing the amount owed with the credit limit of that account. Transferring all of your outstanding balances to a single card — like the one with the lowest interest rate — means you’re only increasing that ratio. Experts suggest aiming for a 30 percent available-credit-to-debt-owed balance.

#4: Not Paying Your Rent
If you consistently “forget” to pay your landlord on time, he can report you to the credit bureaus in an effort to protect himself from a larger financial loss if you end up being evicted. If you’re reported and have a great score — between 760 and 850 — expect that number to plunge below 700; if your score is already in the gutter, having a landlord report you will just keep it there longer.

Paying your rent is an important responsibility, which is why you should properly budget your finances.

#5: Getting A Ticket
If the 5-0 issues you a citation, it’s in your best interest to pay up. Da Man wants money, and will do things like garnish your wages and rat you out to a collection firm to make sure they get it. The firm will then inform credit reporting companies of your delinquency, and your score will be docked.

Knowledge Is Power

Your credit score can affect your life in many ways, which is why you should exert time and effort to maintain or improve it. This is especially important if you’re planning to buy a car or house soon. 

If you see yourself clueless on how you can improve your credit score, simply take note of the information presented in this article. If you know the factors that affect the computation of your credit score, you won’t have any problems attaining a good credit score.