Factors that can affect one’s credit score immediately

Every financial institute tends to check ones credit score before lending them any kind of loan. A good credit score means one will get loans easily and also at a lower rate of interest. However, sometimes it may not be easy to maintain a good credit score and for that one end up paying more in name of interest. Almost every credit scoring institute use various factors to calculate one’s creditworthiness and that is why one needs to keep a check on ones financial transactions to get a clear idea. Some of the things that one should avoid doing so as to keep the credit score higher can be find out this here.

The higher debt/credit ratio

One should keep balances as low as possible because is the ratio between the balance and credit extended spikes in any form then the ultimate result will be shown in the credit score. Try to pay credit card balances and keep a check on the overall expenses.

Late payments

Having a good record of timely payments can increase one’s credit score significantly. But if one starts missing their payment and makes a habit out of it, then that may hurt one’s creditworthiness. One will not only have to pay more interest on loans later, but they will also have to pay late fees for missed payments.

Improve your credit score

Credit requests

If one does multiple credit requests in a small amount of time then it is quite inevitable that ones credit score will decrease significantly. If one is thinking of taking too many new credits is a short span that too of different types like credit cards, home loans, car loans, personal loans, etc. then one should think again.


Hitting a rough time of unemployment can happen any time, and during this time usually many people tend to take help on unemployment benefits. However, this may show a negative effect on the credit score as the overall situation will show a decrease in income and inability to pay all the liabilities. It is wiser to keep the span of receiving benefits as short as possible.

Closing cards

Many a time people tend to think of closing their credit cards, even if there is a balance left on it. well, this will significantly hurt one’s credit score, because the credit score is calculated on the basis of balance one has and how much one is paying. Closing of a card will deduct all that from the credit score leading it to suddenly plummet.

Overall, one should keep a daily check on one’s credit score and take expert guidance from time to time to get the score on track if it is seen decreasing at any point.