When a certain lender wants to decide that you are worth the credit that you are applying for, they review your will credit score then decide whether to give you the loan or not. Below are things that will give you a poor credit rating

1. Late Payments

The credit bureaus take 35 % of your total credit score from your payment history. If you want a higher rating, you can’t afford to always be late on your repayments. Pay promptly and you will get good scores

2. Defaulting payments

Credit card companies will recall your card immediately they suspect that you are habitually a defaulter. This will also make you unattractive to the lenders by giving you a lower score.

3. Letting your card be charged off

When you default paying for a few months, your creditors will have no option apart from charging off your account. Such an account status will significantly lower your score.

4. Being followed around to pay.

Immediately your creditor has called in the services of a debt collector to make you pay up, your credit score has taken a hit since creditors will only send you an account fro collections only after charging the card off. The above are indicators that the creditor has tried in vain to make you pay and is bad for your credit score.

5. Complete loan default.

The lenders will allow you to borrow because you are going to repay the amount at the end of the month. Similarly to a credit card charge-off, defaulting on the loan says that you did not fulfill your end of the contract.

6. Filing bankruptcy

This will give your credit scores the biggest hit. There are better ways that huge debt amounts can be settled which can be pointed out by a credit counselor. Seek one before filing for bankruptcy.

7. Being thrown out of your home.

This will means that you are not paying your mortgage as you should. It will also hurt your credit score if you are late in paying your mortgage each month.

8. Being taken to court and made to pay

If you can only get to pay after the courts compel you to do so, you are saying that you re a bad debtor. Either way, is better for your score if you clear the loan afterwards than you get a judgment and still not pay up.

9. Regular card balances

You will be given lower credit score for having balances above your credit card limit. Always ensure that you pay up the whole amount that you owe from the previous month before the new month comes.

10. Maxed out credit cards

If you have any over-the-limit credit card cancelled, you will are likely to get poor scores.

11. Cancelling over the limit credit cards

By cancelling limit to zero and consequently create a larger credit balance the card. This will only reduce your credit card score by leaving you with what appears like a maxed out credit card.

12. Closing accounts of old credit cards

If you maintain a good credit card history for longer, you will get higher scores. Don’t close your old cards as this will shorten your card history than it really is.

13. Closing cards with unused credit

You increase your credit utilization by closing the cards with available credit and leaving the others with a negative one.

14. Making Application for several credit cards or loans

The part of your credit score that is made up by loan application is 10%. Going within a short span of time to look for another loan or credit card will affect your score.

15. Your debts being either from credit cards or only loans

You will get a better score of the 10% of your credit card score that is from mix of credit if you have  a better mix of loans and credit card debt.