Bankruptcy Law, Credit, Timothy Kingcade Posts

7 Mistakes that Can Hurt your Credit Score

A good credit score can help you get approved for a mortgage or a car loan. It also allows you to qualify for the best loan interest rates possible. A ‘good credit score’ is considered to be a 720 or higher. But it’s all too easy to let your credit score slip. Below are seven mistakes that can negatively affect your credit score:

1.) Failing to understand how your credit score is calculated. The three credit reporting bureaus- Equifax, Experian and TransUnion rely on the following five factors: payment history, amount you owe, length of credit, types of credit and new credit inquiries you make.
2.) Pay late. Lenders look for patterns of missed or late payments. Even being one day late on a payment can lower your credit score.
3.) ‘Max out’ your credit card. Lenders consider it a bad sign if your debt-to-credit ratio is too high. You should shoot for a ratio under 30 percent.
4.) Canceling credit cards. This is not always a good thing. Canceling a credit card can raise your debt-to-credit ratio because the available credit you have shrinks when you close the account.
5.) Failing to strike a balance between paper and plastic. Using a credit card properly can convey responsibility when it comes to money management. Deciding to pay cash for most purchases can actually hurt your credit score.
6.) Applying for a credit you do not need. The more credit inquiries you make, the riskier you seem to creditors. Apply only for credit you truly need.
7.) Give up on improving your credit score. If you have a low credit score and are not making efforts to improve it, chances are your score will continue to go down. There are two things that will eventually help improve your credit score: making regular, on-time payments and the passage of time.

Click here to read more on the seven mistakes that can hurt your credit score.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at