Dave "The Credit Fixer"

  Your credit score can affect much more than whether you get approved for a credit card. It can influence the interest rates you pay, your ability to finance a vehicle or home, and even some employment opportunities. The frustrating part is that several things can hurt your credit without you realizing how much damage they're doing. Here are 7 things that may be hurting your credit score — and what you should know about each one.   1. High Credit Card Balances Even when you make every payment on time, carrying high balances compared with your credit limits can affect your credit scores. This is known as credit utilization. For example, if you have a credit card with a $10,000 limit and a $9,000 balance, you're using 90% of the available credit on that card. Lowering those balances can potentially improve the utilization portion of your credit profile.   2. Missing a Payment by 30 Days or More Payment history is one of the most important factors used in many credit-sc...

  A collection account can create serious problems for your credit profile. Collections generally occur when a debt becomes significantly delinquent and the original creditor sends or sells the account to a collection agency. But seeing a collection on your credit report doesn't mean you should immediately pay it, dispute it, or ignore it. First, understand exactly what is being reported. What Is a Collection Account? A collection can occur when an unpaid debt is transferred or sold to a company attempting to collect the balance. Collections can involve many types of obligations, including: Credit cards Personal loans Medical bills Utilities Phone or internet services Other unpaid accounts The original account and a collection account may sometimes both appear on your credit reports, depending on the circumstances. 1. Collections Can Affect Your Credit Scores Collection accounts are negative credit information and may affect credit scores. The actual effect varies ...

  Your credit score is one of the most recognized numbers in personal finance. Lenders may use credit scores when deciding whether to approve you for a credit card, auto loan, mortgage, personal loan, or other financing. Your credit can also affect the terms you're offered. But a credit score isn't just a random number. It's calculated using information contained in your credit reports, and understanding what influences that number can help you make better credit decisions. What Is a Credit Score? A credit score is generally a three-digit number designed to help lenders evaluate credit risk. Different scoring models exist, including FICO® and VantageScore® , and lenders don't necessarily use the same score or version. That's why the score you see through one service may not exactly match the score a lender sees. Your score can also differ between credit bureaus because the information contained in your Experian, Equifax, and TransUnion reports may not be i...

  Everyone has to start somewhere. If you're new to credit—or you're trying to establish a credit history for the first time—the process can seem confusing. The good news is that building credit doesn't require dozens of accounts or large amounts of debt. It requires the right accounts, responsible use, and time. Here's how to start building a strong credit foundation. Step 1: Start With the Basics Before opening anything, understand what you're trying to build. Your credit reports contain information about how you've managed credit accounts. Credit scoring models use information from those reports to calculate credit scores. If you have little or no credit history, lenders simply have less information available to evaluate. The solution isn't to apply everywhere. Start small and build a positive history. Step 2: Consider a Secured Credit Card A secured credit card can be one option for establishing revolving credit. You typically provide a refun...

  Paying off a loan feels great. You've made the payments, eliminated the balance, and removed another monthly obligation from your budget. Financially, that's usually something worth celebrating. But then something confusing can happen: Your credit score may change after the loan is paid off—and sometimes it can even drop temporarily. That doesn't mean paying off the loan was a mistake. It means credit scoring models evaluate several pieces of your overall credit profile, and closing an installment account can change some of those pieces. What Happens When a Loan Is Paid Off? When you make the final payment on an installment loan, the lender generally updates the account to show a zero balance and a status such as paid or paid as agreed , assuming the account was handled properly. The account doesn't necessarily disappear from your credit reports. A closed account in good standing may continue appearing on your credit reports for years, allowing its positive ...

  Every time you apply for a credit card, auto loan, mortgage, personal loan, or another type of financing, a lender may review your credit report before deciding whether to approve you. That credit check may create what's known as a hard inquiry . Hard inquiries are a normal part of using credit, but applying for too much new credit within a short period can potentially work against your credit profile. Understanding the difference between hard and soft inquiries can help you apply for credit more strategically. What Is a Hard Inquiry? A hard inquiry—sometimes called a hard pull —generally occurs when a lender checks your credit because you've applied for new credit. Common examples include applying for: A credit card An auto loan A mortgage A personal loan Certain other financing accounts A hard inquiry can appear on one or more of your credit reports, depending on which credit bureau the lender checks. Hard Inquiry vs. Soft Inquiry Not every credit check is a ...

  You finally pay off an old credit card you haven't used in years. Your first thought might be: “I don't need this anymore. I'll just close it.” That may sound like responsible financial management, but closing an older credit card can sometimes have unintended consequences for your credit profile. Before closing an account, it's important to understand what can happen to your available credit, utilization, and credit history. 1. Closing a Card Reduces Your Available Credit One of the most immediate effects of closing a credit card is losing that card's available credit limit. Suppose you have: Card #1: $10,000 limit — $2,000 balance Card #2: $5,000 limit — $0 balance Together, you have $15,000 of available revolving credit limits and $2,000 in balances. That's approximately 13% overall utilization . If you close Card #2, you now have only $10,000 in available limits. Your $2,000 balance hasn't changed, but your overall utilization becomes ap...

  Most people know their credit card payment due date , but far fewer pay attention to their statement closing date . Those are two different dates—and understanding the difference can help you manage your reported credit card balances and credit utilization more effectively. If you're trying to strengthen your credit profile, the timing of your payments can sometimes be just as important as making the payment itself. What Is a Statement Closing Date? Your statement closing date is the day your credit card issuer ends the current billing cycle and prepares your monthly statement. Your statement will generally show information such as: Your statement balance Minimum payment due Payment due date Purchases and payments Interest and fees, when applicable Many credit card issuers also report account information to the credit bureaus around the end of the billing cycle, although reporting practices can vary by lender. That makes the closing date important when you're man...

  Credit utilization is one of the most important parts of managing revolving credit. Even if you make every payment on time, carrying high credit card balances compared with your available limits can still work against your credit scores. The good news is that utilization is something you can actively manage. Understanding how it works can help you make smarter decisions about when you use your cards, when you pay them down, and how much available credit you maintain. What Is Credit Utilization? Credit utilization compares the balances reported on your revolving credit accounts with the credit limits available to you. For example, if you have a credit card with a $10,000 limit and the reported balance is $2,000 , your utilization on that card is: $2,000 ÷ $10,000 = 20% utilization Credit scoring models may consider both your utilization across all revolving accounts and the utilization on individual accounts. That means one heavily used credit card may matter even when you...