Tulsa World Feature on "Your Next Great Read"

Thank you to the Tulsa World for featuring Tulsa City-County Library's reader's advisory service, "Your Next Great Read."

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<p>Deciphering your credit score can be tough, particularly if you unsure of all the ways you can be hurting it. Your credit is not just connected to your charge card use, but with numerous everyday monetary activities. Here are five things that can harm your <a href="http://www.howtogetcreditscore.net">how to get credit score</a>, and methods to avoid them from occurring to you.</p>

<p>1. Closing a Credit Card Account.</p>

<p>The act of closing a credit card account doesn't harm your score in and of itself. What it can do, nevertheless, is lower your credit usage ratio, which makes up about 30 percent of your FICO rating, according to FICO. Let's say, for example, you have 2 charge card, both which have a $5,000 credit line, providing you $10,000 of overall credit. If you owe $2,500, your credit utilization ratio-- which determines how much credit you are presently making use of-- would be 25 percent, a healthy figure. If you closed one of your accounts, your credit application would shoot up to 50 percent, adversely <a href="http://www.checkingcreditscore.us">checking credit score</a> regularly.</p>

<p>If you do choose to close an account, ensure your usage ratio will stay below 30 percent once the account is closed.</p>

<p>2. Applying For New Credit.</p>

<p>When you apply for new credit line, whether it's for a charge card or an auto loan, the credit issuer will certainly run a hard query on your credit report. Having a lot of hard inquiries on your credit report at one time can cause a decrease in your rating, and can also severely influence <a href="http://www.allthreecreditscores.net">all three credit scores</a> it if you apply for multiple lines of credit in a brief time frame. It's best to just obtain credit when you require it.</p>

<p>Likewise, just obtain cards that you certain you can qualify for. If you get declined for 5 cards before getting authorized, that's 6 hard requests on your credit report, which will certainly drag down your rating.</p>

<p>3. Renting a Car With a Debit Card.</p>

<p>This is all assuming that the automobile rental service allows you to rent with a debit card. Some don't. At first, this may seem <a href="http://www.howtocheckcreditscore.us">how to check credit score</a> odd because you're not paying with credit. Nevertheless, some firms will inspect your credit report if you choose to pay by debit card. The rental company might see it as a red flag that you aren't making use of a credit card, so they're going to check and see if you can be trusted. It'll count as a hard inquiry and might cost a couple of points on your rating.</p>

<p>4. Funding a Major Purchase.</p>

<p>If a furniture or electronics store offers to let you finance a major purchase, like a sofa or a flat-screen TV, think twice about it. Some in-store financing can be considered a "last-resort loan," which can make you look like a credit risk. Any financing will also lead to a hard query on your credit report.</p>

<p>If you wish to make a big purchase but don't wish to pay for all of it simultaneously, consider<a href="http://www.creditreportsandscores.net">credit reports and scores</a> putting it on a new charge card instead of getting store funding. Many credit cards now offer a 0 % intro APR for as much as 18 months, which means you won't need to pay interest on the purchase for a year and a half. It will certainly likewise raise your credit usage ratio, since you are taking on more credit.</p>

<p>5. Not Paying a Parking Citation.</p>

<p>You might believe you pulled a fast one on the regional town by not paying a parking ticket, but they may have the last laugh. Some cities, including New York and Chicago, send your unsettled tickets to debt collection agencies. Your credit rating can take a severe beating if you have an account in collections.</p>

<p>So, while you might believe you saved $85 on a parking ticket, you could be paying hundreds of dollars more on a brand-new loan. That's due to the fact that you might not get favorable terms on said loan because of the drop in your credit score for not paying that parking ticket.</p>

<p>This doubles for energy bills, back rent and other expenditures that you forgot to pay. Ensure that of your accounts are paid up so that nobody can send your accounts to a debt collection agency.</p>

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