Are you tired of excellent credit ratings and wish for a taste of the bitterness of a poor score? It may be easier to achieve than you think, you know. Naturally, everyone wants to have near perfect ratings and most articles are usually dedicated on how to improve your scores. These things will ruin your record and make it harder to secure financing.

• Not Borrowing

Come people will think they have perfect scores by jot borrowing at all, while in the real sense that only makes it impossible to secure a loan. How will a lender know you can be trusted to return their money if you have never borrowed before? You can remedy this by borrowing $1,000 today just for kicks and then repaying it in a few days. Just like that, your credit ratings will be near perfect.

• Late Payments

If you keep delaying your loan payments, then your score is naturally going to be in the red. One late payment will not ruin your credit score, but repeated lateness will lead to higher interest rates and lower credit scores. And don’t forget interest on late payments that your creditor will gladly charge after you are late by a few days. This includes late payments of your parking tickets as they will be sent to your collector and then reflected on your credit score.

• Taking too many Credit Cards

If you have a sudden appetite for credit, then you are likely to catch the attention of lenders who will become cautious of your intentions. This will likely lead to a hike in the rate of interest or a deeper scrutiny in any credit-related activity – but note that this is mostly the case when the loans are all of a different nature e.g. a mortgage, car loan, and two other different credit cards. If you take the same line of credit a few times – such as a car loan – then it will consolidated and treated as one facility.

• Co-signing a loan

This is a tricky one as we all need a co-signer at one point in our lives, but this will take a toll on your credit especially if the co-signor is a poor payer. Their payments will affect your score in that their late payments become yours. To prevent this from happening, you will need to be careful of who you co-sign with or better yet, do it separately.

Benefits of Having a Perfect Credit Score

• Better Loan Facilities

A poor credit score makes it really hard to access credit facilities since you will be flagged as a high-risk borrower. The GAAR for such borrowers is to provide a lower amount in loans at a higher interest rate.

• Better Insurance Rates

Loan approval is not the only thing that happens when your credit score is great, but your range of insurance products increases. You pay less for your car too. Did you notice that your landlord also determines your credibility as a tenant based on your credit score?

There are way too many benefits that come with having a high credit score, but even better news is that you can repair poor credit.