Many people who are lucky enough to have a flawless credit history and high score find that their financial futures look pretty rosy. When it comes to getting finance for the things they need in life, they generally have no issue. However, for those who have a poor credit score, life can be very different. It can be difficult if not impossible to get mainstream finance, and all that is left is high-interest subprime credit.

Some people are unaware of their credit history and score, and this is because they never bother to check it. However, this is something you should do regularly, and it could save you a lot of stress as well as help you to get back on track. Checking your credit report is one of the keysteps to building credit back up. It is also worth noting that there are many reasons why your credit score may be poor and checking your report may help you to identify the reasons. In this article, we will look at some of the reasons your credit score may be low.

Some Possible Reasons

There are various reasons why your credit score may be low, some of which may be your own doing and others that may have little or nothing to do with you. One of the key reasons is that you have been bad at managing your finances over the years. This means you may have made continued late or even misses payments on bills and debts, you may havedefaulted on debts, or you may have overburdened yourself financially and got into too much debt.

However, another reason for your bad credit could be someone else that is in some way tied to you. For instance, if the person that lived in your home before you had credit problems, you may find that the information has carried across to you just because you live at that same address. In the same way, if a family member living in the same home as you has bad credit, this could potentially impact your own credit score.

It is also important to remember how commonidentity theft is these days, and this is something else that could lead to your credit score dropping through no fault of your own. Someone may have conducted various financial transactions in your name, and this will then have had an impact on your score. Of course, there is always a chance that the damage to your credit is down to human error at the credit reference agencies or other companies that you deal with financially. An error when adding information could make all the difference to your credit report and score.

Check Your Report on a Regular Basis

In order to ensure you can identify the cause of the problem, it is vital that you check your credit report regularly. This will enable you to pick up on any errors and get them rectified. Crucially, it will also enable you to pick up on suspicious activity that could indicate identity theft. 

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