Credit Mistakes You Should Avoid
Bad credit can severely hamper your ability to get a car loan, a mortgage, or even cosign your children’s student loans. There are others with the same problem; over a third of the country has a bad credit score. Recognizing what boosts your credit score and what brings it down is the first step toward building a solid one. Find out the most common credit mistakes and how a credit restoration service can help.
Maxing Credit Cards
Your utilization ratio will increase if you use all of your available credit. Also, this ratio is nearly a third of your total credit score. To further elaborate on credit, you should avoid store cards. Applying for a credit card may seem like a good idea because of the extra 10% off, but each application counts as a hard inquiry on your credit report – hurting it more.
Closing Accounts
Need advice on how to improve your credit score? Don’t get rid of your history by erasing old accounts. While it may make sense to delete an inactive account, you shouldn’t. When you close an old version, you take an immediate hit on your credit score. By reducing your available credit, account closures can increase your credit utilization ratio. When you approach an older version, the average age of all your accounts will decrease.
Avoiding Credit
Bad credit can’t be fixed by never using credit again. Having no credit score is just as detrimental to your financial well-being as having a low one. Developing a credit history at a young age is crucial. This can be as easy as applying for a low-limit credit card or becoming a co-signer on an account held by an elderly relative. Avoiding credit checks will only make your credit score worse. Everyone needs a stepping stone to the next level and eventually is preferable to never.
Don’t stress if you’ve made any of the above credit mistakes. It is possible to improve your credit score with the assistance of credit restoration services. If you want your credit fixed quickly and effectively, you should look for a company with a strong track record and promises to keep working hard until you are satisfied. That’s precisely what AFS Credit Restoration does for those in Denver, CO. Contact (720) 712-5177 immediately, and let’s restore your credit score!