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Top 5 Credit Warning Signs
Preventing bad credit and learn about the top 5 credit
warning signs
Keeping your finances running smoothly is simple when you
know about possible detours that lie ahead. The five danger
signs described here are the top reasons for credit report
troubles. Spot them early and you can avoid any bumps in your
financial journey.
Strange Data – Not sure where that credit card
came from? Unauthorized account or address changes could be
a sign that a thief is using your identity. If you find a
credit card or loan that you don’t remember opening,
call the creditor immediately to investigate. If it turns
out to be a case of identity theft, have the account closed
and follow the fraud resolution procedures outlined in our
Credit Learning Center.
Maxed-Out Credit Cards – High balances on credit
cards are common after the holidays but that extra debt could
be bringing your credit score down significantly. Reducing
your balances to below 35% of your credit limits helps improve
your creditworthiness and can save you a bundle on interest
charges.
Late Payments – Paying your debts late not only
costs you a fee but also damages your credit. If you have
had trouble making your payments on time lately, evaluate
what is causing the problem. Ask your creditor to move your
due date to a different time of the month or sign up for online
bill payment service that can be programmed to remind you
before the due date.
Mistaken Identity – With over 260 million people
in the United States, a few crossed credit records can be
expected from time to time. Finding someone else’s data
on your credit report is more likely for people with popular
or shared family names like “Joe Smith Jr.” If you
find something that does not belong on your report, contact
the credit reporting agencies to have your data corrected.
Credit Score Differences – A dramatic difference
in one of your three credit scores can point to a potential
error on that report. For example, if your score based on
Equifax data is 50 points lower than your TransUnion and Experian
based scores, it is a good idea to look closely at your Equifax
report for inaccuracies or signs of identity theft.
Related Subject:
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