Surprising Factors That Can Hurt Your Credit Score

Posted: Wednesday, July 6th, 2016

These days, there is very little that doesn’t involve a credit check. From apartment hunting to utilities and even some job searches, having a good credit score is important if you want to be taken seriously and get the best rate. Knowing what affects your credit score can keep you from making mistakes that can impact your life and make it harder for you to apply for the credit you need with companies like Green Light Auto Credit.

Often Overlooked Factors that Can Hurt Your Credit Score

There are some obvious issues that can lead to a lower credit score, such as failing to pay bills on time, too much debt, and defaulting on loans, but there are other, surprising reasons that your credit might take a hit:

  • Credit Inquiries – Every time you allow a lender to run your credit, it takes a hit, which can have a significant impact on your credit score.
  • Closing an Account – Closing an account can hurt your credit score because it can reduce the amount of available credit and reduce the length of your credit history.
  • Unpaid Tickets – It’s not uncommon for cities to send unpaid tickets to collections these days. Having that black mark on your record can cause serious damage to your credit rating.
  • Not Using Credit – Using credit establishes your reliability and helps to build your credit rating, not using them makes it difficult for lenders to see that you’re reliable, and can cause them to be closed.
  • Using In-Store Financing – Financing a major purchase with the seller can impact your debt-to-credit ratio, and can add a new line of credit, which can also take your score down a few points.

Let Green Light Auto Credit Help You Finance

At Green Light Auto Credit we’re dedicated to helping you get the best terms possible for your next automotive purchase. We’ll help you determine what habits may affect your credit score, and how you can turn it around to improve your numbers and lower your rate, even if you have less than perfect credit now.

Learn What Affects Your Credit Score and Get a Great Rate with Green Light Auto Credit

Contact Green Light Auto Credit at (800) 200-5551 for a branch near you and learn what affects your credit score and how you can improve it now.