Three Things That Can Cause A Bad Credit Rating

These things can lead to a bad credit rating, or be cause to omit a good credit history.

1. Making late payments or missing payments completely.

Lenders report the amount you pay as well as if it's on time or late. If late, they will also report how late. A lender may be more forgiving if late payments happen on once or twice a year, and if the lateness was only about a week. Yet still, this can lead to having higher interest rates imposed on you by other lenders. If your payments show a definite pattern of lateness or missed payments, any future lender may flat out turn you down.

2. Think again before closing unused credit card accounts.

Before you close any credit card accounts you aren't using, think twice. If you do have a good credit history with a lender, closing that particular account will be wiped out your good history on your credit report. Secondly, that available credit you aren't using can go a long way in adding a positive to your credit score.

3. Shopping for credit CAN hurt your credit score.

Why? Because everytime there is an inquiry to your credit history, and if there are too many inquiries, this excess of inquiries can and may very well hurt you. You risk paying higher interest rates or even possibly turned down for credit.

Consumer Credit Information

Equal Credit Opportunity The Equal Credit Opportunity Act prohibits the denial of credit because of your sex, race, marital status, religion, national origin, age, or because you receive public assistance.