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Small things that can affect your credit score


September 17, 2019


Your credit score is important - it can affect your ability to buy a home or car, take out a loan, or get financial assistance when you need it most. For many people, the way credit scores are calculated is a mystery. There are a huge number of factors that go into this one number. The more aware you are of the way credit scores work, the better you can manage your own. Here are some of the small factors that can affect your credit score.

Missing payments on any bill Many people think that the only bills that affect their credit score are their credit card bills. However, virtually all bills can affect your credit score. This includes things like car payments, mortgage, student loan payments, and more. Your internet, electricity, and phone bills can also affect your credit score if the utility company needs to turn the bills over to collections. Things like unpaid parking tickets can even affect your score sometimes, so try to stay on top of the bills that need to be paid.

The age of your account

The longer your credit history, the higher your credit score, particularly if you've been paying your bills on time. Credit report agencies look at the length of time you've had your accounts open and will reward people with longer histories with higher scores. That's why it's helpful to open credit accounts when you are young to start building good credit and to keep your accounts open unless there's a very good reason to close them.

Reporting errors

It's important to note that errors can still end up on your credit report from time to time, and they can have serious negative consequences if you don't take care of them right away. This is why it's important to check your credit score fairly regularly. If you do encounter an error on your credit score, you can contact the credit bureaus to dispute it. Your credit score can affect many different facets of your life, so it's important to keep an eye on it. Using good financial habits to build strong credit can be incredibly helpful in the long run.