Certain financial behaviors could lead to a cash advance online as one of only a few money options. Credit is based on a score which is affected by many financial decisions. For young people who are just starting out and trying to build credit, their inexperience with finances could ruin their credit score before one gets built.
The funny thing about credit scores is that they will not grow unless credit is used. Getting credit cards without prior knowledge of how things are run have set many young adults into a credit score plunge from the start. Rebuilding credit takes much more effort and over time can be repaired with dedicated focus. The last thing a young person needs is to be limited to cash advances or payday loans online before starting a career.
Cash advances are fast money options for those with no or poor credit.
The more you know about what negatively affects your credit, the easier it will be to maintain an positive score.
- Opening a new bank account can put a hard inquiry into your credit. Many banks or credit unions will look at credit histories before granting a new checking account. Each time a hard inquiry is done, one or two points are taken off of the score. For a person just starting out, every point counts.
- Don’t ignore traffic tickets. It may seem like an unimportant bill to pay, but these bills will go to collections after a certain time period and collections agents always report to the credit bureaus
- Switch cell phone carriers. Each time you apply for a new plan, your credit runs the risk of another hard inquiry.
- Miss student loan payments. Learning how to budget and to remember to make on time payments is one of those lessons which need to be learned early on. Don’t mess with student loan debt. It is money you owe the government and they have more collection options available to get money returned.
- No longer interested in the gym membership? Make sure to follow the fine print directions on cancelling membership status. Without following the proper procedures, the gym can report missing payments to the credit bureau.
- Closing credit cards will not help you. Whether they have balances or not, this action will lower your credit score as it will affect your utilization ratio used to calculate the score.
- Applying for more credit will hurt your score. Potential creditors will make hard inquiries into your credit history. When there are too many at once, a score will drop and it will make the person look desperate for money – denial for new credit is pretty much promised at that point.
- Many car rental agencies will make hard inquiry to credit. Read the fine print or ask prior to leasing if this action is practiced by the company.
A point or two from hard inquiries may not seem too much of a big deal. In fact, all it takes sometimes is a few points to drop a score into a lower category making new credit even harder to obtain. If creditors look at the score as risky, then short-term solutions like cash advances online become a more promised way to obtain extra cash. These short-term loans do not look into credit scores or report the debt. If the balances go into default, the collections agency will report it.
Make smart decisions and be aware of what can affect credit in both positive and negative ways.
