Finance Credit Check

Why is your credit rating fluctuating?

Applying for a new credit card.

Most people think that when you have a new card, you can use it anywhere and anywhere, but this may not be the case, since all cards have limitations depending on how you use them. A new credit card may have a lower rating, but it may change over time.

Closing all past cards makes your credit history shorter, which negatively affects your account.

Payment history.

Repayment of loans and debts must be satisfactory and timely. The lender or the lender bank cannot excuse the missed payments, which can then be recorded in your credit file, and this can interfere with many things, since they are usually kept for almost seven years. Despite the clean slate, a small slip can cause a lot.

Credit card balances.

Credit card balances change monthly because the card is often used. The less available balance on the card, the greater the use of credit.

Credit usage = total debt divided by credit limit

Some people have several credit cards with or without balances; closing cards without balances reduces the use of credit. However, it is never recommended to close a credit card, even if it has a zero balance.

Bankruptcy.

This is what we are all afraid to experience in our lives; bankruptcy can harm your credit file. It is always wise to seek an experienced lawyer who can help you make an informed decision before filing for bankruptcy under chapter 7 or chapter 13. The statute of limitations for bankruptcy can be anywhere from 7-10 years.

Wholesale purchases.

A third of your credit score is directly related to your total debt, which stimulates large purchases or payments using your credit card to change your credit score. This should not be alarming, as this is normal.

Always check your credit rating before buying in bulk, just so as not to bring down your account.

The type of credit account used.

The results will take into account your combination of credit cards, installment loans, department store accounts, mortgages and much more. Your loan portfolio usually accounts for about 10% of your credit rating, so it is important to apply for the accounts you intend to use.

Identity theft.

By analyzing your credit report, you may find something unusual that can lead to sudden changes in your account, this may be a simple mistake that can be fixed. Identity theft can also lead to the appearance of dubious information in the report; it is a serious crime that can be easily dealt with and dealt with if one realizes it on time.

The length of the credit history.

Accounts were set for a specific time, including the time interval between the oldest and the newest account. This is about 15% of your account and can lower your account if you do not use certain accounts for a long time, which makes them inactive.

Time.

Despite the fact that it practically does not work with a credit card (as long as the credit card is not closed), the company can change some policies and cause slight fluctuations in the credit rating of an individual.

Today, half the population cannot determine if there is a change in their credit report, but it is always ideal to register with the credit monitoring service to receive updates about your loan.

Credit monitoring services show why changes have occurred, help prevent identity theft and provide identity theft insurance in case you become a victim. A request to a credit repair agency does not necessarily mean that something is wrong; You can ask for advice on how to improve your credit scores and how some problems can affect your score both positively and negatively, all of them in one way or another add value.

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