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/// YOUR CREDIT SCORE AND WHAT AFFECTS IT

/// What is a credit score?


A credit score refers to the rating you get based on how you have been running your debts. Debts are obligations and one is usually required to meet the demands specified by creditors when it comes to debt obligations. All payments need to be made in a timely manner if you are to have a positive credit rating. On the other hand, late payments and default on your debts leads to a poor credit rating. There are also those who have no credit rating at all. These are individuals who have not filed up for a debt of any form. They do not hold credit cards and even if they have bills to pay, they are not registered by the electoral roll.

/// What can negatively affect my credit score?


There are numerous things that can affect credit score negatively. This may be the reason why your mobile phone contract applications are being turned down. The most frustrating thing may be that many of these companies would not be willing to tell you why your application has been turned down.

While many contract providers have different criteria they look at when you apply for a contract mobile; the main reason for decline is usually a bad credit record as well as inability to finance the installment required.

  1. Late payments, Default, and CJJ’s are just some of the reasons why one develops a bad credit history. A record of the above stated usually stays on one’s credit record for years and thus has a certain term effect on your credit rating. In spite the fast that it will eventually diminish, this record will stop you from accessing a number of financial advantages for the while they last. The only remedy to this is in ensuring that you make regular payments which are timely so that you can meet what you require.
  2. Discontinuity in your life can be a great cause for a bad credit record. Changing of your address frequently or being out of employment for some time has a negative effect on your history. It lists you as an individual who can not be reliable especially when it comes to financial obligations. Inability to keep one job for a reasonable amount of time is also another reason why one will not be able to maintain a good credit record.
  3. Lack of a bank account or a credit card means that you have been compromised when it comes to your credit score. Your credit card records and how you manage payments plays a role in your credit score ranking. The manner in which you operate your bank account also has plenty to say in your credit score. When you don’t have these two, then it means that your score is affected negatively. Lack of a bank account also means that you do not have the proper channel that will be used in recovering the monthly payments expected for the credit you desire to have.

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