kayode10
VIP Contributor
A low credit card score is a reflection of how well you have managed your credit in the past, and it can have a significant impact on your financial future. the problem is that most of the people usually fall into this trap and they don't really know what they are doing to end a low credit score ratings.
In this article I am going to highlight and explain are some of the most common causes of a bad credit card score:
In this article I am going to highlight and explain are some of the most common causes of a bad credit card score:
- Late Payments: Late payments are one of the most significant contributors to a bad credit score. If you consistently miss due dates, it can have a negative impact on your credit score.
- High Credit Utilization: If you use a large portion of your available credit, it can lower your credit score. Credit utilization refers to the amount of credit you have used relative to your credit limit.
- Maxed Out Credit Cards: Maxing out credit cards can be a major red flag for lenders, and it can quickly bring down your credit score.
- Too Many Credit Inquiries: Every time you apply for a loan or a credit card, a hard inquiry is made, which can impact your credit score. Having too many inquiries in a short period can lower your credit score.
- Unpaid Debts: Unpaid debts, such as medical bills, utility bills, and collections can have a significant impact on your credit score.
- Bankruptcy: Filing for bankruptcy is one of the most severe impacts on your credit score and can stay on your credit report for up to 10 years.
- Length of Credit History: The length of your credit history also impacts your credit score. A short credit history can lower your score.