Has a credit score of yours taken a recent dip? Don’t panic: take a climb through Experian’s Decision Tree to figure out why it could have happened…and what you can do about it.
|
|
|
|
|
|
|
|
|
|
Have you made a late payment recently?
| YES
|
Late payments (of 30 days or more) are a major factor that can affect your credit scores.
|
|
Make the payment as soon as you can and try to keep future payments on-time. Consider automating payments if things are hectic or you’ve forgotten them in the past.
|
|
Making timely payments is an easy way to keep your credit scores strong.
|
| |
NO
|
|
|
|
|
|
|
|
|
Is a credit balance currently running high?
| NO
|
Have you closed a credit card recently?
| YES
|
The longer you have had a credit card, the more it can strengthen your overall credit when it shows you’ve been using credit responsibly for a long time.
|
|
Pay down your balances as you normally would, but consider keeping your credit card open to benefit from its history, longevity, and available credit.
|
| |
YES
|
|
NO
|
|
|
|
|
|
|
High balances on your credit cards may be lowering your scores, even if you’re current with payments.
|
|
Are you holding too much unsecured debt?
| NO
|
Has your credit history been the target of a lot of inquiries?
| YES
|
Too many “hard” credit inquires – when different financial institutions check your credit in order to make a lending decision – may negatively affect your credit scores, since it may look like you’re seeking credit at many places and trying to overspend.
|
|
Limit your hard inquiries when you can. Remember that checking your own credit (known as a “soft” inquiry) never affects your scores and helps keep you in the know.
|
|
|
YES
|
|
NO
|
|
|
|
|
Consider keeping balances at or below 30% of your credit limit on each card to avoid common “overuse” in the eyes of some lenders.
|
|
Secured debt, such as a mortgage, is seen differently by lenders and others than unsecured debt like credit cards.
|
|
There may be an error in your credit score. To dispute your credit report online, visit: http://www.experian.com/disputes/main.html
|
| |
| |
|
|
|
|
|
|
|
|
|
|
|
Make your debt work for you by working to pay down your unsecured debt and making prudent use of secured debt.
|
| |
| |
| |
|
|
|
|
|
|
|
|
|
|
| |
| |
| |
| |
|
|
|
|
|
|
|
|
|
|
| |
| |
| |
| |
|
|
|
|
|
|
|
|
|