Top things that will negatively affect your credit rating
There are things that will harm your credit score and consequently destroy your financial bearing. It is therefore wise to steer clear of such, and it all starts by having an understanding. So, here is a list of some of the top killers of your credit rating.
Missing payments or making late payments on anything such as your electricity, gas, mortgage as well as credit card bills. This will show on your credit file for upto six years.
If you receive a CCJ also known as a degree in Scotland, this will have a serious toll on your credit ratings and will permanently scar your credit file.
Having multiple loans may also have a negative impact in your credit score. Too many loans will stretch you and make it a lot harder to complete your payments in time. Additionally, too many simultaneous loan applications will show on your credit report and banks/other lending institutions may hesitate to offer you credit. Its wise to leave a decent time period between loan applications.
Moving residence too often makes lenders less confident in offering credit.
Not being on the electoral register may also affect your credit rating as being on the register serves to ensure you are who you say you are.
In cases where you open credit card accounts that you don’t end up using, lenders will look at how much credit is available to you rather than how much you are actually using.
Check on mistakes on your credit report. They may be giving you a poor credit rating. Someone may have fraudulently inserted those mistakes there. In case you discover them, contact your nearest credit reference agency to have it rectified and cleared.