7 Hidden Things That Affect Your Credit Score, According to Financial Experts (2023)

You may not even know that these factors influence this large number.

If you are buying a car, posting a loan or processing an offerA new house, a number can be profiled from any important transaction: your credit score. Unfortunately, even for people with a decent handful of personal finances, getting your grade to grow and stay there can be difficult.

"Credit scores are a mathematically derived value that lenders use to assess an individual's credit risk when evaluating a new loan application," he said.Jeffrey Stouffer, a certified financial advisor andfinancial expertWith Justanswer. "However, credit scores can also be affected by some other factors that are not readily apparent."

Do you want to put your number in the right place? Read on to find out which seven hidden things can affect your credit score, according to financial experts.

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Get rid of your credit cards too soon

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7 Hidden Things That Affect Your Credit Score, According to Financial Experts (1)

Anyone who has managed to get out of a mountain of debt knows that sending the final payment by credit card can be incredibly freeing. In many cases, it may make sense to completely cut ties with the company. However, experts warn that you can wait a while before picking up plastic scissors.

“Paying off credit card debt is an important step that needs to be celebrated. But while you might be tempted to close the account after it's paid, to avoid building up a balance on your card."family finance specialist Andrea WörochtellLive better.

“The length of time you've had credit – also known as your credit history – affects your credit score. They therefore want to keep the old accounts open. Add recurring fees and set yourself up to pay every month to keep you going,” she suggests.


Pay your bills on the wrong dates

7 Hidden Things That Affect Your Credit Score, According to Financial Experts (2)

It's true that paying your bills regularly and keeping your expenses at CHGE can help put the brakes on your credit score. According to experts, this can also be summed up exactly when you pay back and how much you have to pay in total and when.

"You can also significantly improve your credit score by making sure your balance is low — or even $0 — if you list a fixed credit card every month," he said.Robert Farrington, founder ofthe university investor. "For example, if your statement ends on the 15th of each month, pay the full amount on the 10th. That way, when your balance is released, it will show a consumption of $0 - which can improve your credit."

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Not keeping your credit card balance low enough

7 Hidden Things That Affect Your Credit Score, According to Financial Experts (3)

Everyone knows running a credit card is risky when you can't pay for what you spend. But even if you keep your purchases in check, your overall balance can still run a little short despite the max, hurting your score in the process.

"Credit scores are based on loan types," explains Stouffer. “Revolving credit accounts have more impact because this type of account will always change. It is the acceptable upper limit. Above that, the score drops.”


I don't have a mortgage

7 Hidden Things That Affect Your Credit Score, According to Financial Experts (4)

The decision to buy a home can be one of the most important financial decisions anyone makes in their lifetime. Of course, a good credit rating can be essential. Turns out, experts say managing a mortgage can also help improve your long-term credit score.

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"Long-term loans just show the payment models and cuts in the loan balance," Stofer said. “No mortgage will delay grades because it implies a lack of permanent foundations in the residence. Some can be paid in full and there is no late payment. But not having a mortgage will prevent that person from reaching the highest possible score for these reasons.”

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Check your credit very often

7 Hidden Things That Affect Your Credit Score, According to Financial Experts (5)

It could be argued that one of the most frustrating parts of working hard to maintain your credit score is that when it comes under scrutiny by a potential lender, it can take a toll on your hard-won number. However, experts say being aware of how others are checking your score can be a way to keep your score as high as possible.AE0FCC31AE342FD3A1346EBB1F342FCB

“Usually, when you apply for a loan, the lender conducts an investigation of your credit history. This is called a 'strong claim' and can negatively affect your credit score," he explains.Tommy Gallagher, former investment banker and founder ofbest mobile bank. “However, there are also 'soft solicitations' that don't affect your credit score and are usually done by lenders for marketing purposes. So it's important to be aware of these difficult requests and be careful not to give up your consent."

Gallagher emphasizes that most personal credit monitors use prompts for information, and it's easy to monitor unexpected severe checks that can be back-to-back. And while you can't help but apply for multiple forms of financing because of a major decision or a major lifestyle change, you can avoid charging too many credit cards in a short period of time.


Be a victim of identity theft or fraud

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7 Hidden Things That Affect Your Credit Score, According to Financial Experts (6)

Nowadays, everyone knows that your personal information is a leak of settlement data in the hands of someone who is using it for malicious purposes. But while it's not always possible to control identity theft, you can keep your score much higher by regularly monitoring these breaches, which is helpful advice that some experts say the general public isn't getting enough practice for.

"If your personal information was compromised and used to open credit accounts in your name, it could have a big impact on your credit score," explains Gallagher. "It's important to regularly review your credit reports and protect your personal information to avoid these types of issues."

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Forget Auto Compensation Setup

7 Hidden Things That Affect Your Credit Score, According to Financial Experts (7)

While technology has made certain aspects of everyday life easier, it has also created a busier place in other ways. It can be difficult to sift through the daily barrage of notifications to pull out the really important reminders and alerts in a sea of ​​marketing notifications. Because of this, even if you feel organized to pay your monthly bills, it can hurt your credit score if you don't authorize the process.

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"It's simple: make sure you don't miss a payment," says Farrington. “You can help yourself by setting up direct debit so that your payments are always paid on time. Also, don't forget that utility bills like cell phone bills, energy, water, and even rent payments can negatively affect your credit score if you miss just one payment. "

Best Life provides the most up-to-date financial information for top professionals and the latest news and research, but our content is not intended to replace professional advice. Always consult your financial advisor directly about the money you spend, save or invest.


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