A credit record is a fundamental financial instrument used by banks; and there are actions that affect your credit record. Banks, with your credit record, evaluate your solvency and ability to pay when you apply for a loan. This applies to all the loans that you can conceptualize, such as mortgage loans, or loans with mortgage guarantees.
Next, we are going to tell you 3 actions that, believe it or not, negatively affect your credit history and can be quite harmful when you are on the occasion of getting a loan.
Action 1: Don’t pay your debts on time
It may seem a little obvious that we mention this; but it is extremely important to keep up to date with loan installments; not to mention that you must pay them fully and without fail.
Having credits with expired terms in addition to risking your assets will give a bad image to your credit record.
Action 2: overdraw your card
This means that, if your credit card has a certain credit limit, then it is good for you to check your balance when checking your history. Ideally, your balance should be well below the credit limit, otherwise your credit history will be affected. That is why it is very convenient that you avoid, at any time, overdrawing your card.
Action 3: Pay a credit with another credit
This is obvious, if you pay a debt with another debt you are only managing to owe more money than in the beginning, the only difference is that it will be to another person; But this will look bad on your credit history because you will notice that you are in debt for long periods of time and that does not look good at all.
Conclusion of these actions that affect your credit record
What you should know about all this is that, whatever happens, you should keep an eye on your credit history constantly and carefully, because if you do not do it you may run the risk that when your chance to obtain some type of loan arrives or a mortgage refinance, you will be in trouble.