A high credit score isn't necessarily a bad thing. A credit card application can be rejected if you have made mistakes in the past. Diane Elizabeth was rejected for credit due to two late payments she made on her credit card in the last five year. She was successful after contacting the bank to reapply.
Low credit utilization
High credit utilization rates can have negative consequences for your credit score. There are many options to lower your credit utilization. First, you need to make sure that you do not overextend your credit cards. High credit utilization can be caused by using credit cards beyond their limits.
Having one type of credit
Credit mix (or the combination of several types of credit) can affect your credit score. This account for 10% of your overall credit score. If you only have one type of credit, your score will likely be lower than you'd like. There are many ways to improve your score. You can use different types of credit, or reduce your utilization.
Late payments
Your credit score could be affected if you make late payments on a regular base. There are ways to make your credit score better and avoid making late payments. You can catch up on past payments if possible and make your future payments on schedule. It won't remove any previous late payments but it will raise the payment history.
Multiple credit cards
While multiple credit cards are a great way for you to improve your credit score and credit rating, you should be aware of the possible risks. Using more than one credit card can make you appear like a risk to creditors and can lead to more debt and hard credit checks. Not only can this hurt your score, but it can also lower your credit limit. It is best to only have one or two credit accounts with zero balances. You will be able to only use them when absolutely necessary.
Credit history that is long
Credit score will be affected by the length and quality of your credit record. This is because your score will increase the longer you have credit history. You also need to consider how many accounts are you currently have. A longer history means that you are less likely not to miss payments. While closing old accounts will reduce your credit history's length, it will not lower your average age. Credit score is also affected by the age of your oldest account.
Good payment history
Credit scores are affected by your payment history. You'll see a rise in your credit score if you make your payments on time. But late payments can impact your score. Remember that late payments on older accounts are less important than those from recent years.
Keep track of your debt
The credit repair process is complicated if your credit score is too low. It is important to keep track your debt. A third of your FICO score is based on your debt, so you must carefully monitor your credit usage. Your score may be affected if you have too much debt.