Consumers should keep in mind that how they deal with managing money and debt problems could affect their credit score.
In a recent guest column for Indiana’s Fort Wayne News-Sentinel, the state’s Secretary of State Todd Rokita wrote that not dealing properly with credit card debt could end up reducing a person’s credit score, which could make it harder for them to get other loans. In order to help their credit score, Rokita said consumers should make sure to always pay their bills on time.
“Also, try to limit the number of credit cards you apply for, and maintain at least one credit card that is more than two years old,” Rokita said.
Along with not paying bills on time, there are a number of other things people may do that will lower their credit score. Recently, FICO noted that the action that could reduce a credit score the most was declaring bankruptcy. Doing so could drop a person’s score by as much as 240 points, depending on where they started on the scale.