Have you ever thought about why your credit history
isn’t as impressive as you would have wanted it to be? See if any one of these ten things or bad credit habits could be the reason for your low credit score
:

1. Old accounts that have been closed. Be careful about closing old accounts, especially those that have been with you for a long time. Your credit report is made up of these old accounts and closing them about would be like erasing the oldest parts of your credit history.

2. Refinancing loans too often. Some financial experts may recommend home loan refinancing to improve your credit history or to get lower rates. But frequent refinancing may send out a negative impression to creditors and can badly hurt your credit score.

3. Too many store cards. Gas station credit cards and gas station cards are popular but owning too many of these cards can also send a negative impression to lenders and cause your credit rating to drop. Also, too many credit cards increase the risk of bad debt.

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How well do you know your credit payment history? Though FICO is not sharing the exact formula they use to calculate your FICO or credit score, they will say that there are five major categories. Your payment history counts for 35% and is the most heavily weighted category in the calculation of your score. There are many pieces to your payment history. Here are some things to look out for:

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Your FICO score is a term used to measure your overall credit worthiness. It is based on the information provided in your credit report. The report, in turn, reveals information about your past and present payment patterns. It also lists details regarding your credit history and the different forms of credit you currently have.

In today’s world, you’ll find that your credit report and your credit score can make a big difference. Some employers will want to check your credit rating before hiring you. Certain car dealers will look at your FICO score before granting you a loan. Insurance companies, banks, and even landlords may also be interested in your credit standing.

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