Today’s money tip will highlight a few surprising things that can hurt your credit score.
It’s common knowledge that having too few credit cards can make it difficult to establish a credit history. To counter this, many people take out too many credit cards, thinking it will boost their score. In reality, this can actually hurt it. The key is to have the correct amount of credit cards so that you can use them to build credit, but still remain within your spending means.
Many people have credit cards that they haven’t used for a while, which typically have a $0 balance. While it might be tempting to close these accounts, it will often negatively affect your credit history. The longer you have an established line of credit, the better your credit score will be.
Also, keep in mind that bills with local vendors such as a dentist or doctor cannot be overlooked. If you forget to pay the bill, it will be sent to a collection agency – and result in a big black mark on your credit history.
The key to good credit is to exercise common sense before making any decisions.