How to Effectively Get a Bad Credit Score

A good credit rating can get you loans in a flash. But a chaotic and an undesirable one will get you denied. Since you have started building a credit, you know for a fact that your aim is to garner a good score. A good score is in the range of 700 and up. Scores below it are tagged as average, below average and low.

If you fall just beyond the 700 mark, you can still get considered. Your chances can still look bright when you apply for loans such as personal loans and car loans. But if you get a bad credit score, which is way below 700 then you’re doomed. Your chances for approval will look dim. Therefore you must avoid having a bad credit history at all cost. But how do you get a bad score you ask? Here’s how:

Do not pay on time.

Credit bureaus give scores according to your timeliness. This is in terms of paying your bills. These bills include your credit card charges, personal loans, house loans and so forth. Whenever you pay on time, you get a high score. If you were late, they give you a negative one. When you keep on missing payments then expect that your score keeps decreasing. It would decrease until such time you’d fall below the average.

Consume your entire credit limit.

This is with regards to your credit cards. The difference between your existing balance and available credit limit is essential in credit scoring. The higher the difference on your card, the higher the score you get. Usually, a difference of 10% between the two references is good. But if the difference is slim, you get a low score. This is because credit bureaus tend to think you are irresponsibly using your card thus the small credit limit. This situation, in just one card, may not be that detrimental. However, when all of your cards have small credit limit then it is bad.

Do not pay at all.

Getting late on payments is already bad enough. But when you completely forget your responsibility then expect a definite negative score. It is worst when you abandon a debt for years. Its negative scoring will haunt you unless you will pay for it again. With this default on record, you will definitely find it hard to get the confidence of lenders.