Good Lifestyle

Whether you buy a car, you postulate for a loan or reprocess an offer on A new house , a number can be profiled from any major transaction: your credit scoring. Unfortunately, even people with a decent handful on their personal finances may find it difficult to obtain their note to increase and stay there.

"Credit scores are a mathematically derived value that lenders use to assess a person's credit risk when assessing a new credit request," said Jeffrey Stouffer , a certified financial advisor and financial expert With Justanswer. "However, credit scores can also be affected by certain other factors that are not easily seen."

Are you looking to get your number in the right place? Read more to discover seven hidden things can affect your credit scoring, according to experts in finance.

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Those who have managed to get out of under a mountain of debts know that the sending finally in the last payment on a credit card can be incredibly liberating. In many cases, it may seem appropriate to completely reduce links with the company. However, experts warn that you may want to remember a little time before taking plastic scissors.

"The reimbursement of your credit card debt is an important step that deserves to be celebrated. But although you can be tempted to close the account once it is paid to avoid adding a balance on the card," Family finance expert Andrea Woroch recount Better life .

"The time you have had credit - also known as credit history - involves your credit scoring. You therefore want to keep the old accounts open. Add recurrent fees and configure yourself to pay for every month To keep it active, "she suggests.

It is true that paying your bills regularly and keeping your expenses in CHGE can help brake your credit scoring. But according to the experts, this can also be summed up exactly when you return the payment and how much you must overall when you do.

"You can also considerably increase your credit scoring by ensuring that your balance is low - or even $ 0 - when your declaration of firm credit card each month," said Robert Farrington , founder of The college investor . "For example, if your declaration closes on 15 of each month, make a payment for the full amount of the 10th. In this way, when your balance will publish, it will display 0 $ used - which can increase your credit scoring."

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Everyone knows that managing a credit card is risky when you cannot afford to pay for what you spend. But even if you keep your purchases in check, your global balance could still work a little despite the maximum and damage your score in the process.

"Credit scores are based on types of credit," explains Stouffer. "Renewable credit accounts have more impact because this type of account will always change. Is the acceptable upper limit. Above this, the scores drop."

Deciding to buy a house can be one of the most important financial decisions that someone takes in their life. Of course, having a good credit rating in the process can be essential. It turns out that experts say that the management of a mortgage can also be what increases your long -term credit scoring.

"The long -term loans only show the payment models and reductions in the loan balance," said Stofer. "The absence of mortgage will hold the scores because it implies a lack of permanent foundations in residence. Some may be paid in full, and there is no late payment. But the absence of mortgage will prevent the note of this person to reach the highest possible score for these reasons. "

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We can argue that one of the most frustrating parties to work hard to keep your credit score is that whenever it is examined by a potential lender, this can have consequences on your hard -won number. But experts say that staying aware of how others check your score can be a way to keep it as high as possible. AE0FCC31AE342FD3A1346EBB1F342FCB

"When you ask for a credit, the lender will generally make an investigation into your credit history. This is called a" hard demand ", and this can have a negative impact on your credit scoring", explains Tommy Gallagher , former investment banker and founder of Best mobile banks . "However, there are also" soft requests ", which do not affect your credit scoring and are generally made by lenders for marketing purposes. This is why it is important to be aware of these difficult requests And to ensure that they are not made without your consent. "

Gallagher stresses that most personal credit rating monitors use requests for information and can be easy to monitor for unexpected hard checks that can be successive. And although you cannot avoid asking for several forms of funding due to a major decision or a major lifestyle change, you can avoid asking for too much credit cards in a short period of time.

Nowadays, everyone knows that their personal information is a liquidation data leak in the hands of someone who will use it for harmful means. But although you cannot always control identity theft, you can keep your score much higher if you regularly monitor such violations, which is useful advice that some experts say that the general public does not practice enough.

"If your personal information has been compromised and used to open credit accounts on your behalf, this may have a major impact on your credit score," explains Gallagher. "It is important to regularly check your credit report and be vigilant on the protection of your personal information to avoid this type of problem."

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Even if technology has facilitated certain aspects of daily life, this has also made a more eventful place in other respects. It can be difficult to sift through the daily dam of notifications to withdraw really important reminders and alerts in a sea of marketing notifications. This is why even if you consider yourself organized when it comes to making your payments of monthly invoices, you can damage your credit score if you do not authorize the process.

"It's simple: make sure you never miss a payment," says Farrington. "You can help yourself by configuring the auto-debit, so that your payments are always paid in time. In addition, do not forget that public services such as mobile phone bills, energy, the Water and even rent payments can all affect your credit negatively if you just miss a payment. "

Best Life offers the most up -to -date financial information for the best experts and the latest news and research, but our content is not supposed to replace professional advice. Regarding the money you spend, save or invest, always consult your financial advisor directly.