Your Credit Score is Doomed if These Are Not Handled

If you have not experienced it yourself, there will be a day when you need good credit. It may be a big factor if you try to get a loan or decide to rent an apartment or car. Common advice tells you to pay your credit card charges promptly and on time to raise your credit score, but there are other small activities that can affect your score.

Renting a Car with a Debit Card

By using a debit card to rent a car, the rental company has a high chance they will check your credit score before allowing you to use their property. This may seem harmless until you find out how they check your credit report.

There are two main types of ways to check a credit report. One way is you personally checking your score online or a company using it to figure out if they want to market to you. The other way is when a potential lender, sometimes a car rental business, looks at your credit report in consideration for loaning you their car. Because you are inquiring about a potential loan, this may show on your credit report. If you have multiple accounts or a long payment history you will be affected less, but there is still the chance your credit score may not be at the score it can be.

Unpaid Services

When you fall behind on payments for a service, parking tickets, or renting property, you have a chance that your information is sent to a collection company. When turned into collections, your debt may be reported to credit bureaus. There are some ways to potentially get the mark off your credit report, but it is better not to have to waste time and money dealing with the situation.

“If you don’t have credit, you probably can’t get it.” — Manuel Valenzuela

Closing Credit Card Accounts

A big way to make change on your credit score is by opening or closing a credit card account. Opening a credit card account allows you to build credit in terms of lowering your utilization rate — the amount of money you spend related to your credit limit. Closing a credit card account raises this utilization rate because of your lower credit availability. It may be better for you in short-term financing to close a credit card, but in the long-term credit score category it may negatively affect you.

No-Limit Credit Card Usage

Another thing that may determine your credit score is not having a limit placed on your credit card. Because a company cannot find your utilization rate, your score could have a negative effect. If you do choose to use a no-limit card, be sure to have your credit card company’s reports sent to the main three bureaus to ensure your credit is not negatively affected from only having credit card companies being able to look at your balance.

I do not write this to scare you, but to inform you. Often people are crushed by credit card debts and they do not know these little factors that may have hurt them. It is easy to rack up a bad credit score but hard to repair one so I set out on my mission to help repair credit scores and change the lives of people like you. Go to my website HERE and see that I can help you fix your credit score and set you on the right path for your future.

It is easy to get a poor credit score, but it is hard to fix that bad score so let me help you get back on track to success.

- Manuel Valenzuela