What Can Affect my Credit Score?

Credit scores can be difficult to navigate. Your rating can change regularly, and this can be due to your financial habits and the information contained in your credit report. Things like making too many credit inquiries, not meeting your repayments and having overdue bills can affect your credit score negatively. However, on the other hand, making your repayments on time and regularly paying off your debt can have a positive impact on your credit score.

If you’re looking to find out more about what can affect your credit score, read on below.

What can affect my credit score?

Your credit score can change regularly due to activity in your credit report. While having good financial habits can positively affect your credit score, there are a lot of bad habits that can negatively affect your credit score too. These could include:

Payment history – Your payment history can have a big effect on your credit score. Multiple late repayments can affect your credit score, and the later you are, the more your credit score may decrease.
Credit inquiries – Applying for too many forms of credit in a short space of time can harm your credit score by creating too many hard inquiries. Hard inquiries may remain on your credit report for two years. It may not matter what type of credit you apply for, or how much you’re asking to borrow. Try to space out credit applications when you really need them.

Reporting errors – It’s possible that your credit file could have errors listed on it, so it’s important to make sure everything listed is accurate. If there’s a mistake on your report, you may need to contact your lender and the credit reporting agency that listed the error.
Overdue bills – Consecutive late payments to the point where debt collection agencies are involved with you can negatively impact your credit score.
Avoid defaults – Defaults and certain court judgements may have a negative impact on your credit score so it’s best to try and limit them from happening by staying on top of your repayments.

How can I improve my credit score?

If your credit score is not where you’d like it to be, there are things you can do to improve it. You might try:

Paying existing loans and debts on time – Having a record of consistent payments can help to improve your credit score over time. If you have bad credit but you have a loan, making your repayments consistently and on time can improve your credit score with every repayment made. Loans can be used as a tool to increase your credit score as long as you are consistent with paying them off.

Paying your bills on time – Paying your phone and utility bills on time can also help to improve your credit score. If you have a bill that is more than $150 and is at least 60 days overdue, then a default could be listed on your credit report. A default will stay on your report for five years, and can directly affect your credit score.

Only apply for credit when you need it – Regardless of whether you get approved or not, applying for new credit or a loan will show up on your credit report. This may have an effect on your credit score.

Regularly paying off debt – If you can make at least the minimum repayments due on any personal loans or credit cards by the due date each month, lenders will see that you are a reliable borrower. However, paying off more than the minimum amount every month may improve your credit score.

How we can help

Try our credit score calculator today to find out your credit rating. Fast, free and safe, Tiger Finance can help you to find out your credit score at any time. If you’re looking for a loan, we can help to get you funded in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved. Call to speak to one of our loan specialists today for your free consultation.