Know what gives you bad credit history

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » Know what gives you bad credit history

Know what gives you bad credit history


Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.
Most of us, at one point or another, have to be involved with a financial institution, be it a bank, a loan provider or a credit card company. These institutions always carefully analyze the credit history of applicants, as it forms a major part of their selection and approval procedure. Financial institutions are known to be wary of customers who have had financial setbacks in the past. Among numerous kinds of financial fallouts, a bad credit history is one of the worst things that can happen to you. It can have far reaching consequences and in adversely affect you in a number of ways, especially if you are in need of a loan or a credit card. Bad credit history can happen due to a number of different reasons, most of which arise due to the failure of the individual to stick to financial agreements or pre-arranged schedules. These factors combine to give you bad credit history, which has the potential to financially impair you for the rest of your life. To avoid this eventuality, it is essential to know what factors can influence your credit rating, and which actions can contribute towards giving you a bad credit history. Making Payments on Schedule The first and foremost factor that features in your credit history is your record with payments. An average person has to make various kinds of payments on a monthly basis. These can comprise of bills, credit card dues, taxes and other forms of payments. While emergencies can happen occasionally, if you are making most of your payments on schedule, you should be in the clear with your credit record. Delaying payments, defaulting on loan repayments and procrastinating in general have a bad effect on your credit record. Likewise, not paying taxes regularly leaves a mark on your credit record, which you may find difficult to repair later. Avoid these, and you can make sure that your credit history remains untarnished and avoid problems at a later time. Too Much Credit, Too Many Cards If you ever happen to request too much credit from lenders or banks, or possess too many credit cards, you are taking a blow to your credit record. These factors can give you bad credit history, as they show you in a poor light financially. Financial institutes consider these a liability, and if you want to obtain a loan later on, these factors might harm your chances to a considerable degree. Watch Those Transfers With balance transfer accounts proving a popular easy way out, an increasing number of people are opting for it to scrape out of a tough financial situation. While this may prove to be beneficial on a short-term basis, it has repercussions if done too often. It may be viewed as an attempt to hold back payments. A habit of transferring debts too often is sure to show up on your credit record, and likewise causes bad 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.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners: Winter 2019 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Winter 2019 – Expert’s Choice

Posted: December 17, 2018

Nights are still drawing out, the wind is cold, and the air smells like snow already – the winter is close. Christmas and holiday season are approaching swiftly, and overwhelming gift ideas are swirling chaotically in your mind. Ready or… Continue reading

Credit Card Tips For Holiday Shopping 2018

Credit Card Tips For Holiday Shopping 2018

Posted: December 15, 2018

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household… Continue reading

Credit Cards to Save More on Holiday Shopping

Credit Cards to Save More on Holiday Shopping

Posted: November 25, 2018

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door… Continue reading

You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!