4 things you want to prevent from getting to your credit history

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » 4 things you want to prevent from getting to your credit history

4 things you want to prevent from getting to your credit history


Updated: December 26, 2012

Add to Favorites:

Credit history is like a treasure you accumulate for years and years together. Messing up your credit history is just as easy as it is hard to construct a good credit history which might take years or even more. High income and expenditure customers who make their payments on time are the ones with the highest credit rating but here are some of the things you would want to avoid in your credit history as much as possible.

Missed payments

A lot of credit card customers have outstanding debts, which counts against their credit scores. One thing you will have to do right from the start is to make your payments on time. Every missed payment brings down your credit rating further. As you string consecutive months or years with consistent payments your stock with the credit card companies will eventually rise.

Defaulting on loans or mortgages

If you default on a loan or quit from a mortgage midway, you will get a very bad stain on your credit history that is hard to get rid of. Getting credit is difficult as is but when you have a loan default in your credit history, things get even worse and tougher for you. It is something you have to tray and avoid as much as possible. If you cannot pay your loan try talking to your debtor and reach a settlement so that your debtor doesn`t report your delinquency to the credit bureaus, although you cannot stop the lender from doing so even after a midway settlement.

Bankruptcy

Declaring bankruptcy seems to be a good option for some people drowned in debt. However, you must know that your credit history will suffer irreparably when you declare bankruptcy. For the next 7 years, bankruptcy keeps appearing in your credit report making it impossible for you to get loans or credit cards.

A lot of balance transfers

One of two balance transfers is fine if you are trying to avail the rewards. However, you should not overdo it. When you are jumping from one credit card to another, it shows you in bad light when credit card companies look at your credit history. Moreover, if you do a balance transfer, and close your old accounts this could lead to a loss of your credit history and reduction in credit limits, both of which have a negative impact on your credit history.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

Posted: June 21, 2017

Whether you are married or not, we all agree that marriage is incredibly important for a person. It signifies the beginning of two people as a team, as a family, of a long commitment. It is a newly born union and the sign of your choice, ... Continue reading
How To Choose The Best Credit Card For Everyday Spending

How To Choose The Best Credit Card For Everyday Spending

Posted: June 21, 2017

When you reach for your wallet to pay for groceries, gas, dinner out, or any other everyday purchase, are you searching for cash, a debit card, or a credit card? Many people hesitate to charge this type of everyday spending to a credit ... Continue reading
How to Save Money. Best Credit Card Deals and Tips.

How to Save Money. Best Credit Card Deals and Tips.

Posted: June 20, 2017

We all've been through or may find ourselves in such an emergency when money is needed immediately. Lucky you are if you have savings for unexpected expenses. If not, it's never too late to start saving money. There are different ways to ... Continue reading