Your credit rating is a number that directly relates to your financial well-being. Credit scores require on-going maintenance. A high credit score allows you to take advantage of low credit card rates as well as low mortgage and auto loan interest rates. Phoenix Banking Rates wants help you find low credit card interest rates, but you can help your chances of finding more by understanding what can negatively impact your credit score and avoiding making those mistakes.
- 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 source 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.