Credit Score Effect

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Your credit score is a three-digit number that can have a positive or negative effect on your financial future. It is a lot easier to get approved for a mortgage and take out a loan if you have good credit. In some cases, having good credit can make it easier for you to get a job.

There are many ways that you can hurt your credit. Fortunately, even if you have done things to hurt your credit, there are ways that you can get it back on track. Below is a list of things that can hurt your credit score and ways that you can get back on track:

Not Checking Your Credit Report

What you do not know may hurt you. Even if you think that your credit is good, you may still have errors on your credit report. These errors can cause your credit score to
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Set up reminders if you have trouble remembering to pay your bills. If you happen to miss a payment, then you should try to make up it up as soon as you can. Most companies will not report to the credit bureaus until the payment is at least 30 days past due.

If you are struggling to make the minimum payments, then you will need to inform your creditor as soon as possible. You may be able to get a payment plan that lowers the interest rate and monthly minimum payment.

Applying For Multiple Loans And Credit Cards At One Time

Your credit score is checked anytime that you apply for a new credit card or loan. This is referred to as a hard inquiry. Hard inquiries hurt your credit score. Your credit score probably will not be hurt by one or two hard inquiries. However, your score will likely take a dip if you have a lot of hard inquiries in a short amount of time.

It is important to note that hard inquiries may stay on your credit report for a long time. This is one of the reasons it is good to avoid applying for a loan or credit card unless you really need one.

Ignoring Collection
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You do not want to ignore a bill that is in collections. It will lower your score. That is why you will need to contact the collections agency as soon as possible if you have an outstanding debt. In many cases, people have been able to work something out with the collections agency and paid less than what they

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