You may think your credit is perfect because you pay your bills on time and never miss a payment. If you are having trouble getting a loan and don’t know why, it could be that your credit habits are scaring away lenders.

Here are some items that may be lurking in your credit report that are making lenders leery:

Multiple Lines of Credit
If you have a lot of open credit cards this can be a bad signal to lenders. Lenders see this as an indication that you might be having financial difficulty.

Credit Inquiries
Lenders also don’t like it when you inquire about new lines of credit. Applying for credit can have a negative impact on your credit score. Every time you allow a potential lender to pull up your credit report, your score can take a small hit.

Co-Signing a Loan
When you co-sign for a loan that dept becomes your debt and shows up on your credit report. Potential lenders look at that debt as yours because you are ultimately responsible for it.  If the person you co-signed for stops paying, pays late, or misses payments, your credit report can be negatively impacted.

Making Minimum Payments
Lenders who view your credit report don’t like to see that you are paying just the minimum payment. If you consistently pay the minimum payment due, it could indicate financial stress or confirm that you are unable to pay off the full balance.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Set your Twitter account name in your settings to use the TwitterBar Section.