Your credit score is a very important number and requires on-going maintenance. It’s your key to a financially prosperous future. A high credit score allows you to take advantage of low credit rates as well as low mortgage and auto loan interest rates. Mesa Banking Rates wants help you find low credit card rates, but you can make the process even easier by understanding what factor can negatively impact your credit score before you apply for your next card.
- Maxed out cards. Your credit rating is partly determined by your debt to credit ratio. A low ratio means better credit. If you have a high credit limit, that’s helpful. However, if you meet that limit on a regular basis, you will impact your credit score negatively.
- Short credit history. If you just turned 18 or have only recently begun using credit, your credit history will be short. Creditors prefer to see a long timeline of credit usage and the longer it is, the better.
- One type of credit. Your credit score is also based on the “mixture” of credit you use. Only charge expenses to your credit card? You may benefit your credit rating by also taking advantage of installment loans, retail accounts and other forms of credit.