Low Credit Score why is it Low Credit Score Bankruptcy Credit Cards Low Rating Credit Reports

There could be many reasons why your credit score may be low. That is why the first thing to do is to get copies of all three of your credit reports from the three agencies.

Each credit reporting agency may have different or erroneous outdated information on your reports so it should be checked about once a year.

One of the main reasons of low credit scoring is wrong information being left on the report, once you get the report be sure to fill out the correction form the credit reporting agency sends with your report.

If you are just starting to establish credit and really have no credit history, that is also why your credit score may be low. It doesn’t necessarily mean you have bad credit, but it means the agency has no other credit to compare it to, to establish a credit score.

If you open a credit card and decide you don’t want it because of the terms, closing that card right away will adversely affect your rating. It is suggested that you keep that card for a wile until you can close it with it damaging your credit score.

If too many credit cards, student loans, equity lines are open and are maxed out. The high revolving credit lines and balances on your cards and loans severely impacts your credit score directly. It will determine how you qualify for more credit and it examines the amount of time taken to pay off the credit cards.

If you have co-signed a loan or a credit card for someone else and they default on payments or are late than you are held responsible for the credit card payments. Always check your credit report so you can know if payments are being made and make the person responsible for payments or take legal action if you have too.

If you declared bankruptcy, it will take seven to ten years for that bankruptcy to remain on your credit report. This is very negative on your credit rating and score; it will adversely affect your credit, your ability to get a job and possibly rental or home mortgage.

If any of these issues have affected your credit rating and you have started to fix your credit by making timely payments or paying off credit cards. Write to the credit reporting agencies and let them know that you have caught up to payments, credit card companies report usually on a monthly basis but if you want the information posted as soon as possible simply show proof of cleared payments and a letter requesting thaht thye correct the information as soon as possible.

Another reason why credit score may be low is identity theft. It is very important that your credit report is checked once a year or if you can afford a credit monitoring service or identity theft insurance, its a great safe guard to protect your from the new crime of the century. White collar crime is no longer for company executives, it can be done online with any one’s stolen data so rip and shred all documents and never open an email link. If you get an email from your financial instituion, simply go to their website, never open a link, you could get spammed and some of these emails are so good they look like professional institutions have sent you the correspondence.