Welcome to the PRBC blog!
Taken a look at your credit score recently? Not what you wanted to see? There are three reasons why you might have a bad credit score:
Number one: You maxed out your credit card. This will negatively affect your credit utilization rate – which accounts for 30 percent of your credit score.
Number two: You only have one form of credit. Even if you’re financially responsible, credit bureaus like to see a mix of loans and credit on your report. Plus, if you miss a payment on your credit card, this will have a greater impact on your report, as you don’t have any other loans or credit cards to balance it out.
Number three: You missed a few payments. Stay on top of your bills. If you receive one in the mail, pay it immediately. That way, you won’t forget about it if you place it aside.
For more credit improvement tips, visit us next time!