Are you concerned that your credit history may be less than stellar? At Sterling Automotive Group, we understand that not everybody is perfect, which is why we offer the absolute best financing out there! Everyone can get financed and we work with all financial institutions! Here are some of the most common ways to hinder a good credit score.
Unemployment is one of the most prevalent causes of poor credit. Struggling to meet the bills and missing payments are the easiest ways to fall into a credit nosedive. Piggybacking on unemployment, frequent late payments are another commonplace issue. One or two missed payments will not drastically impact your credit score, but consecutive late payments will throw up a red flag to credit companies that you are unable to pay back your debt.
Every time someone views his or her credit score, there is a small ding to the credit history. When an application is submitted for a new credit card, the credit card company requires a credit check. Multiple credit checks within a short period of time generally indicate that a person is financially hurting, and therefore may not receive a new credit card because of the risk associated with financial instability.
High credit card balances are one of the easiest ways to ruin a credit score. Maxing out a credit card and keeping it there will ravage your credit history. Since a credit score is calculated based on a ratio of your total debt to total available credit, maintaining a high balance will drastically affect the score.
Filing for bankruptcy trumps all other reasons for destroying an excellent credit score. Legally, any bankruptcy filings can stay on your credit history report up to a whopping 10 years! In that timeframe, procuring a mortgage, getting loans at a decent rate and even purchasing affordable car insurance will be much more difficult.
Although there are many ways to tank your credit score, there are just as many ways to improve it. Monitoring your credit, making payments on time and choosing sound financial decisions are all a great way to put you back on track!
Sterling Automotive Group in Lafayette and Opelousas, Louisiana is here for you. We will do our absolute best to help outfit you with the perfect vehicle at a price you can afford. Please stop in and see our amazing inventory selection. We promise you will not be disappointed!