A credit score is necessary for your general financial health. Lenders and creditors rely on it when deciding to work with you and the costs involved in the process. Getting a credit score above 800 is an uphill task since it takes dedication and hard work. Unfortunately, many people unknowingly make errors that have an impact on their rating. Such mistakes do not only affect your score but also affect the interest rates in the long run.
Here are some mistakes that can lower your credit score:
Avoiding All Types of Credit
You could find yourself in problems due to credit, but you need not avoid all kinds of credit. Instead, choose good credit and steer clear of the bad ones. It is only through good credit that you build your credit score and avoid falling into the debt trap.
In some cases, renting an apartment can be a problem if you lack a credit record. It is because most landlords require a copy of the credit report. Provided the payments are on time and the credit card balance paid off in full, you will be fine.
Making a Late Payment
When you forget to settle payment for your loans…