10 Factors to Be Avoided To Protect Your Credit

It is easy to protect your credit from any harm than to repair it. If you avoid those things that can hurt and damage your credit badly then you won’t have to struggle to repair your damaged credit. You can save you from bad credit headache and trouble by avoiding following bad things.

1- Avoid late payments

Try to avoid paying off your payments late. Paying your payments late can hurt your credit badly and leaves a black spot on your credit history. Remember that credit report contains all your payment details that can be beneficial or unbeneficial for you so try to avoid late payments.

2- Limit Your Credit

This is the second factor that can affect your credit score badly. To avoid this thing, try to keep your balances below 30% of your actual credit limit. This is because if your credit card balances becomes close to your credit limit then it can make a drop in your credit score.

3- Avoid too many applications

Try to avoid filing too many applications for credit card and loan. Large number of applications affects your credit score and lead to the drop in your credit score.

4- Don’t close credit card with balance

If you have a credit account that contains balance and you close it then even after closing of that account, the balance of that account is reported to the credit bureaus.

5- Don’t skip your rents

It is very critical factor because if your landlord is not reacting after you skipped your rent then it doesn’t mean your landlord is kind to you. Your landlord can report this to the credit bureau anytime. Try to pay your rent on time and don’t skip it.

6- Don’t avoid paying medical bills

Pay your medical bills on time because if you don’t pay your medical bills then it can affect your credit score badly. Skipping your medical bills can cost you a black mark on your credit report.

7- Use your credit card

If you are new user of credit card means you have lower credit score. You can overcome this problem by using your credit card smartly.

8- Avoid closing old credit cards

If you have old credit cards and you close them then this can affect your credit score badly. This is because your old credit card contains a place in your credit history. If you don’t want to damage your credit history then keep old credit cards open and use them infrequently.

9- Avoid paying less than minimum

If you pay on time but pay off less than the minimum payments then it affects your credit score and it is equal to late payment. Not only equal to late payment but also counts as a late payment. You can fix this problem if you are even unable to pay the minimum payment. Just call your creditor and ask him to make some other arrangements in this regard and try to fix it up before the due date.

10- Avoid bankruptcy

Either avoid bankruptcy or if it is inevitable then make sure you are unable to pay the credit cards by all means. Filing for bankruptcy damages your credit score badly and leaves a black spot for next several years.

Making a wise decision about your credit card is important. Try to avoid all above mentioned things to protect credit score from any damage.