Equations of the FICO credit score can be a black box, but there are thousands of articles written about what should and should not do when it comes to your credit score. Most of them are pretty obvious - pay off your credit card bills on time, do not apply to a lot of credit, and keep your nose clean. However, many different ways you can mess up your points without you knowing it.
Credit cards close. It will be less "strange" in recent years, but closing your credit card can damage your score. What seems a simple cleaning of the financial definitely affect a variety of factors that go into your credit score. When you close the card, your credit limit goes down, which increases to your credit usage (bad). If the card is longer than most other cards you have, the average age of existing accounts is absorbed (bad). It is not as bad as the collection account, but they can tell the difference between good credit and bad.
Fill out a form not Move. When you move, it is often important to report your change of address to the United States Postal Service, or hazard the loss of important documents such as credit card and utility bills. The last thing you want to do is be back in payment for the reported credit bureaus. Some credit card companies will report as soon as you are 30 days late. As you do this, be sure to hold your mail while you are away. You do not want to have your mail and stealing your identity.
Quality Check banker asks. If you have a friend who worked at the bank, especially if they are a loan, you may be tempted to ask them to check your credit score for free. Instead of jumping through hoops corporate credit rating for free or pay for itself, may seem harmless to ask a friend to view it. Besides possibly due to misuse of company resources, it will hurt your credit score because of small grants will generate a hard inquiry on your report. When you find your own value, the credit bureau to treat it as a soft inquiry as to ask about yourself. When you ask your bank, all the bureaus see a bank requesting your score, if you applied for a loan.
Not Paying Library fines. Last year, because the library a few dollars is no big deal. Now, with the budget in an emergency, all trying to find ways to make more money and fund essential community services. This means that some libraries to send even the most small debt collection agency. Their tactics at the Institute at their own expense and penalties, payable to the bureau reports, and that can have devastating effects on your credit.
Parking or speeding Ticket arrears. Did you get a parking ticket in another state? How about a speeding ticket or other citation? Because the quotations are considered debt in place and not in the business of government to ignore the debt in any form, it is almost always hand a collection agency. Agencies tack on penalties and costs, the bureau reports, and, as unpaid library fines, it is extremely painful for your credit score.
[Related: 4 Habits That ruin your Credit Score]
Pay less than the loan. Let's say you have a report for you and want you to return the debt from you, so you agree to pay 75 percent of the loan. What really hurts your score because the remaining balance of what you pay will be reported as a new burden on your credit report. You can avoid this when you are negotiating with debt holders, but if you do not do it, most will report the bill. Debt is settled, but the impact on your credit report will take. It seems counter-intuitive, punished after paying, but that is how it works.
Cards With No Limits. Some credit card comes with absolutely no limit listed, which at first may seem like a good thing. In fact, their credit card companies do not report credit limits to credit bureaus and agencies assume it is $ 0 for their calculations. It will make use of your credit artificially high, which hurts your score. If you only have a credit card is just one of endless credit card, your credit use will be eternal.