Mistakes that destroy your credit history

Credit and credit cards are our saviours sometimes. You can get the benefit of paying up for a thing, later, while you can buy and enjoy the product right away. This benefit has been given by the bank to people who might struggle at various points of time, due to insufficient funds.
But many people try to misuse this feature and try to cheat the banks, by not making the payments and making very late payments. If you are aware, this action will attract severe punishment and your smartness might even lead to landing in jail for the offence committed.
We urge you to keep your credit records clean, and be a worthy person so that you can receive more benefits going forward. Sometimes mistakes do happen unknowingly, so find out and learn more about your range which mistakes lead to offence and better to avoid them.


Credit account closure:
Yes, this is the first offence that will put you in trouble! Does it mean that you shouldn't be closing your credit account?
Well, that's not the point, but closing a credit account all of sudden, without making the pending payments, or keeping the dues months together, you will surely attract trouble, even if you try to close the account. Never be under the impression that once you close the account, all your dealings close! Never! You need to clear your outstanding balance and payments and then formally close the account, by informing the respective bank.
Consumers with very lower credit history are tending to be looked upon as risky borrowers, who might not have the capability of repaying on time. Credit history remains seen in the score, and the negative ones are the first to be visible, and this stays for a good long 7 years.
Payments missed:
This is the second offence that will fetch you trouble. not if it was your first time, though! Making credit payments on time is very essential. The credit scores, often look at your payment pattern, before approving you a loan or anything else, related to finances. And the most offensive ones are missed payments. Though you might have taken just a day late, a late payment is always considered in the late history, and never by the number of days.

Read below how your credit score is affected due to missed payments:

Frequency of your late payments: like missing payments every month


Recent late payment:

in case you are looking for a loan or a new account opening, then your recent credit score is taken. So, there, the most recent late payment will make you lose any opportunity of availing the financial support. The severity of such missed or late payments: sometimes there are few humble customers who are late, for some reason, maybe late by a day or 2. Such people, credit score are better than the latest payers.


Requesting for credit, excessively:

We have seen consumers who have been filling too many credit applications of different banks. But, they might not know that every time you fill a form, you give a license to the credit department to access your scores anytime, and post them anytime. So, the number of such posts will reduce your score automatically, making you risky for a credit card. We hope you have clearly understood the basics mistakes that we might commit, sometimes unknowingly and get into trouble. So, better to make clear and understood decisions than a haphazard which might put you at a larger risk.


Yes, we understand you might have got into a settlement with another bank, for non-payment of old debts. But, please ensure that this act of yours is going to reflect in your credit score, and as we said it will stay for 7 long years. So, the next time, you go in for settlement better remember this. Your score will almost be a negative one.

Over-usage of credit limit:

In case you are over utilising your card, getting OD's very frequently, then please remember that this too is counted as bad credit history and will be putting you in trouble. Always utilise the credit limit, which is available to you. Never try to cross it every time, just because you have an OD. Use your credit cards, at least as possible, and only for genuine reasons.

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