Surprising Ways to Ruin Your Credit



Many of the things that can negatively affect our credit report and credit scores seem to be counter intuitive. There are things that we do that we consider to be beneficial for our own finances and budget and yet these things can make our scores go down. For example, closing a credit card account.


Your credit history is an important component of the your ability to successfully apply for new lending. Each aspect of your previous experience with lenders will contribute in some way to the decision about whether you will be successful in any future applications. The credit reference agencies use these previous interactions with lenders to build up a picture of your financial behaviour, stability and reliability.


Your credit score is a measure of your credit worthiness and is an input into the calculation of how much money you can borrow and what interest rate you may borrow the money at. Many people do not know that they do have some control over the score assigned to them.