San Diego, California (PRWEB) April 02, 2013
CreditSources.org, a leading authority website on credit consumer services, credit cards, and unsecured personal loan options for consumers with bad credit and no credit uncovered some of the top reasons why consumers may have low credit scores. CreditSources investigated the topic because countless consumers dont know what affects their credit scores, while others dont know whats causing their scores to drop.
Sending in Late Payments
The FICO scoring way is regarded as the top credit score calculators. About 35 % of the customers FICO score takes into account late repayments. Because late repayments create up such a big amount of customers credit scores, its very significant which they send their repayments inside about time.
In order to remember to pay on time, consumers can ask their payment providers for electronic reminders, or they could set their alarms on their computers or cellphones to alert them to payment due dates.
Maintaining a High Credit Utilization
Credit utilization is the ratio between ones accessible credit as well as the amount the customer uses. This rate makes up a fair share of ones credit score, normally between 20 plus 25 % of the total.
The lower the credit utilization the better, as a high one could mean that the consumer is close to maxing out a credit card or perhaps nearing a missed payment. To remain on good credit terms, consumers should ideally keep their credit utilization under 30 percent and avoid high credit card balances.
Applying for Multiple Credit Cards at Once
Every time a customer applies for a credit card, the lender requests a copy of the customers credit report. Every request causes ones credit score to drop a little, thus multiple request inside a brief amount of time makes an even bigger dent.
To avoid numerous negative marks, consumers should apply for credit cards sparingly.
While multiple factors can contribute to whether a consumer has good or poor credit, consumers always have the opportunity to improve their scores. Sending in payments on time, keeping a low credit utilization, and only applying for a credit card every now and then, are just three simple financial behaviors that can help to rebuild low credit scores.
About CreditSources.org
CreditSources.org is a leading authority website about credit connected customer services, individual finance, unsecured individual financing for individuals with bad plus bad credit, credit sources, credit cards, plus all details credit.
