Book a FREE consult before you consider paying any collection account. If you have already paid a collection account then you should still schedule a consultation with a board-certified credit consultant at NC Credit solution. We will help you understand some options you can take and how we can help.

Link 👉 nccreditsolution.com

Hard inquiries will hurt your score and cause your score to drop a few points. 10% of your credit score is inquiries which accounts for 55 Points. So, if you have multiple hard inquiries reflected on your credit report within a short period of time then it will cause your score to drop. This occurs very often when people apply for mortgages or new car loans. It’s very important you have credit monitoring at all times so you are immediately notified when there is a hard inquiry on your credit report. If you have too many inquiries on your credit report then this can be a reason why companies will deny you for credit.

Stay on top of your credit with credit monitoring by checking your credit report every month. We are partnered with a company that provides 24/7 credit monitoring so you will immediately be notified if there are any new inquires that occur that you did not authorize. Click the link here to start monitoring your credit today

👉 smartcredit.com

This will 100% drop your score every time you do this and I will explain why. 30% of your credit score is credit utilization. This accounts for 165 points. If you have 2 credit cards with $1,000 limits and they are both maxed out then you are utilizing 100% of your credit utilization and maxing out your points! This is initially telling banks that issued you the credit card that you cannot manage debt and that you can potentially have problems paying the debt back.

You must stay below 30% of your credit utilization at all times because banks deem 30% of your credit utilization a good utilization. A 10% utilization is even better but you should never go above 30%.

One late payment can cause your credit score to drop anywhere from 60 to 100 points. The reason why is because of how a credit score is computed. 35% of your score is payment history which accounts for 192.5 points. Theoretically a creditor can send your account to a collection agency after your bill is 31 days past due. It doesn’t matter if it is one dollar or if it is one thousand dollars. Always keep this in mind before you are ever late on any bills.

Set up automatic payments to be deducted for all your bills through your checking account or a credit card. I would personally recommend your credit card because the more payments you make on a credit card, the more points you will make which can convert to more money in your pocket at the end of the day. This can easily prevent you from being late on any payments you need to make.

This can occur if you are carrying a credit utilization above 30% frequently. For example, if you have a credit card limit with a $5,000 limit and your monthly utilization fluctuates between 30% and 80% from month to month then the credit card issuer can drop your credit utilization to 50% or lower. In fact, the credit card issuer can drop your credit utilization at any moment. For example, if you are utilizing 50% utilization on a $5,000 credit card and the credit card issuers drops that $5,000 limit to a $2,500 limit then you just maxed out your credit card because you are now utilizing 100% credit utilization.

Always stay below 30% of your credit card utilization and if you can stay below 10% for all your credit cards. This will keep your credit utilization low and limit the chances of the credit card issuer decreasing your limit.

Closing a credit card that is secure or unsecure can lower your credit score for a few reasons. Canceling a credit card will reduce your overall credit utilization which account for 30% of your credit score and lower your length of credit which account for 15% of your score. If you add these two sectors together then it will account for 45% of your credit score or 247.5 points! The longer the credit history you have, then the better your score will be! Ideally you should aim to have at least 2 to 3 years of positive payment history reporting or longer. The longer the credit history then the better the score will be. Lender’s love seeing a long positive credit history because this tells them you have a history of making payments on time! This is advantageous for getting approved for bigger loans and getting approved for higher credit card limits.

Don’t close your credit cards out. Ideally you want to have at least 3 lines of revolving credit reflected on your credit report reporting to all 3 bureaus. If you need a secure credit card that reports to all 3 bureaus then click here to order yours today. 👉  creditbuildercard.com

Check your credit report to make sure that the credit cards you do have are reporting to all 3 bureaus by clicking here 👉 smartcredit.com

This is possibly the number one reason why your score is possibly dropped. You must monitor your credit report every month to check for inaccuracies and information that should not be on there. At NC Credit Solution we highly recommend checking your credit report at least once a month. This will help you build muscle memory and stay on top of your credit. Some of the things you want to check for are things such as:

Get in the habit of checking your report monthly. If there is any information that you see that is inaccurate then you should contact NC Credit Solution right away so we can help you fix it.

Monitor your credit every month with our partner by clicking this link here

👉  smartcredit.com

If you want a Board-Certified Credit Consultant to provide you a FREE credit analysis and

Consultation then click the link here 👉  nccreditsolution.com