Factors That Lower Your Credit Score

Any people know ways to increase their credit score, but what factors actually lower your credit score?

1) Accounts that have been open less than three years. Having long term credit accounts that you consistently pay on time is an important indicator of stability. As your credit history ages, your score should increase.

2) Anytime your credit report is pulled. This is if you apply for a loan and the lender requests a copy of your report, or you order a copy of your credit report yourself directly from the credit bureau. This is when an inquiry is added to your report. Hard inquires are bad, soft inquiries are ok. Hard inquired are from creditors and lenders with whom you have applied for credit or a loan. A Soft Inquiry is when you request your own copy of your report or when an employer checks your credit history. Lenders and creditors do not see these inquiries. Inquiries remain on your report for up to 2 years.

3) An account that goes unpaid or becomes delinquent.

4) Bankruptcy.

5) Closing old accounts. Having old accounts open, even if they are not used regularly, is good for your credit score.

6) Constantly using too high of a percentage of your credit line. For example, it is good to stay under the 30% mark for the amount of credit your have used in your credit line.