There is a lot of information available about how to manage credit debt. However, there is not quite as much about those things that we might not realize that affect our credit report. If you consistently make on-time payments but still have a low credit rating, one of these could be the problem:
Excessive inquiries. An inquiry is simply a notation that’s made to your report every time you apply for credit, whether or not you are granted credit. A lot of inquiries, particularly within a short amount of time frequently raises red flags for potential creditors and may lower your credit score.
Unpaid medical bills. Most people are aware of large medical bills that have gone unpaid. But it’s easy to forget about that emergency room visit six months ago or that x-ray you had last year. However, unpaid medical bills affect your credit rating. While a single unpaid medical bill for a small sum might not have a huge impact in and of itself, multiple such unpaid bills will affect your credit.
Missed student loan payments. It’s important to maintain your student loans in good standing. Missed payments go on your credit report like other forms of credit. If you are unable to pay your student loans, contact your guarantor to request a deferment, forbearance, or payment reduction.
Unpaid utility bills. A lot of people don’t realize that utility and cable companies can report to credit agencies just as creditors. Those who do not pay such bills will likely find that it eventually catches up with them in the form of a low credit rating.