3 little things you’re doing that might be hurting your credit score
Life is busy and everyone has the occasional oversight or memory lapse from time to time. Here are a few simple things that people might be doing oblivious to the fact that they could end up affecting their credit score.
1. NOT CHANGING YOUR DIRECT DEBITS WHEN YOU GET A NEW CREDIT CARD
When you get a new credit card, if you don’t intend to cancel your old credit card make sure you transfer over all your direct debits. One way to identify all your direct debits is to check the transaction statements on your old card going back 12 months.
Remember to keep checking the statements from your old credit card in case you missed something. If a charge goes unnoticed and ends up as an unpaid bill it can be listed on your credit report as a default if your payment of $150 or more is overdue by 60 days or more and this record will have a negative impact on your credit score .
2. HAVING UNPAID OR OLD SHARE HOUSE ACCOUNTS IN YOUR NAME
If you live in a share situation and have electricity, gas or broadband accounts in your name make sure the bills are always paid on time. If you need to move out and you can’t change the name on the contract, it may even be worth paying the bill yourself and chasing your ex-housemates for the money to ensure you don’t get left with a default on your credit report that could affect your score for five years.
3. INCREASING YOUR CREDIT CARD LIMIT
If you accept a credit limit increase on your credit card, your card issuer may perform a credit check, which is essentially the same process as if you were applying for a new credit card. The higher credit limit on your credit card will probably come at the expense of your credit score – so think twice about whether you really need that increased limit when it’s offered to you.