Many Americans find these days that their poor credit score does prevent them from taking on a loan, mortgage, car finance or just a credit card. Unfortunately these people only realize that their credit score could be in trouble when it is already too late. So you need to keep close eye to your credit report if you are looking to plan ahead your financial future and do not want to lose control over your finances.
There are loads of signs that your credit score could be in trouble but you need to be able to spot the early signs to be able to repair your credit rating before things get out of control and it is getting even harder to fix the problem. I am going to detail the most common signs that indicate your credit score has been decreased and your credit rating has become worse.
No. 1 sign that your credit score could be in trouble
The first and most common indication of your credit score being decreased is that you get declined for credit you have thought you might easily get approved for. If previously you got accepted for the same amount, the reason is either that the banks changed the rules or your credit rating is worse than it was before.
No. 2 sign that your credit score could be in trouble
Your bank account gets downgraded or your credit limit on your credit card gets reduced. Alternatively you apply for a temporary increase of credit limit and you get declined. Banks do continously monitor their clients’ credit profile, and it might be a clear indication that your credit score could be in trouble
No. 3 sign that your credit score could be in trouble
Missed or late payments do get reported to Credit Bureaus and if you have been late for more than one month it must have affected your credit rating. You need to make sure that you keep an eye on not only credit repayments but monthly mobile phone contracts, utility bills and subscriptions.
No. 4 sign that your credit score could be in trouble
You are offered higher interest or different conditions from the advertised rate. This is also a sure sign of having a not so great credit rating. Your credit score is determined by many aspects, it can be that you moved accounts or house, and it has changed in no time.
No. 5 sign that your credit score could be in trouble
Now, this is the reason and sign the least people know about. If you are shopping around for finance and submit multiple applications your credit score gets reduced every single time. Therefore the more applications you make the lower your credit score gets.