Top 4 Things That Hurt Your Credit Score and How to Avoid Them

Your credit score is a vital metric that is going to have a massive impact on your life. It is going to have an impact on whether you can apply for certain bank accounts. It is going to have an impact on whether you can buy a home. It can have an impact on whether you are approved for a loan. It can even have an impact on whether certain places will hire you. In short, it is vital that you know what hurts your credit score.

Here, we want to give you some of the factors you need to know about when it comes to knowing what hurts your credit score. We will also give you some advice on avoiding them wherever possible.

Here’s What Hurts Your Credit Score

Your credit score is a number that reflects your financial history and how likely you are to repay your debts. It can affect your ability to get loans, credit cards, mortgages, and other financial products. But what factors influence your credit score, and what can you do to improve it?

1. Frequent Credit Applications

When it comes to what hurts your credit score, applying too frequently for credit can have a huge impact.

When you apply for credit frequently, it looks like you have money issues. If you have money issues, then lenders probably wouldn’t want to hand you any cash.

Obviously, the best way to avoid this is to only apply for credit (e.g. credit cards, loans, etc.) when you really need them. In some cases, it may be worth looking into the idea of applying for title loans online. This is because that should not have an impact on your credit score. It won't show you as applying for credit.

2. Failing to Pay Bills on Time

This is somewhat of an obvious one. It is important that you pay your bills on time, particularly if they are for loans, credit cards, etc.

Some lenders will give you a small amount of leeway to catch up with your bills (normally a few days) before they report to the credit agencies. However, we wouldn't rely on that too much. if you have a due date on your bills, then make sure the money is sitting in the account of the company by that due date.

If you are struggling to pay a bill on time, then it may be worth looking into title loans online. This is something that can be especially useful if a bill is a little bit higher than normal.

3. Reaching the Credit Limit on Your Credit Cards

Credit reporting agencies like to see a good credit utilization ratio. This means that if you have been issued credit, then you should leave some available.

A lot of people do not realize that this is what hurts your credit score, even if you have access to a lot of credit. If you are hitting your credit card limits, then you are doing yourself a disservice.

In an ideal world, you will want to try and keep that credit utilization ratio as close to 30% as possible. So, if you had a $1000 limit on a credit card, you only want to be using $300 of that. Try not to dip too far below 30%, though. Lack of using your available credit will have a negative impact on your credit score.

4. Not Having a Credit Card or Loan

This may seem a little bit odd, but when it comes to what hurts your credit score, this is a big factor.

Lenders need to be able to see that you have a history of managing your credit well. If you do not have a history of paying back anything to those you owe money to, then they can't rate your creditworthiness.

Sometimes it may be worth applying for a credit card or two if you are new to building up your credit history.

Title Loans Online Can Help Protect You from Hurting Your Credit Score

If you need to borrow cash but you do not want to impact your credit score, then it may be worth looking for title loans online.

At Home Title Loans is able to borrow you cash using the title of your vehicle. We do not report to the credit agencies. This means that you do not need to worry about your credit score taking a hit. This can be fantastic if you have been working hard on improving your credit score.

At Home Title Loans ensures that the process of applying for your online title loan is simple:

1. Fill in the quick online form found on our website and click “Submit”.
2. You will be contacted by one of their representatives. They will then set up an appointment for your vehicle and title to be verified. You can choose any place that’s comfortable for you to meet with our verification agent, and they will drive there to deliver your loan packet.
3. Meet with the agent and provide the required items that include your lien-free title, your driver’s license, and your vehicle for a quick inspection.
4. Sign a few forms after the VIN number and your documents are verified.
5. E-sign the rest of documents that will be sent to you via email.
6. If everything goes to plan, the money will be in your account the next business day.

At Home Title Loans is able to work with those with bad credit which means it’s an option worth considering for anybody who needs to borrow money quickly.

Get Started Today!

If you are looking into avoiding what hurts your credit score but still need to borrow cash, get in touch with At Home Title Loans today. You can start the process of car title loans at home either by calling us at 800-514-2274 or submitting a short inquiry on our website, and one of our friendly representatives will gladly assist you with your request!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.