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

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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

The content is accurate at the time of publication and is subject to change.

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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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