A recent article from WalletPop discussed several ways for consumers to avoid ruining their credit reports.
Those hoping to maintain a respectable credit score should avoid having too many credit card accounts, the article relayed. While no finite number exists that consumers should avoid, WalletPop recommends having "a good mix of credit and an adequate number of credit cards from the standpoint of the FICO scoring system." Some lenders, however, will judge potential borrowers on their application scores, which are based on the information relayed on a credit application.
Credit shopping may also affect credit reports, according to WalletPop. When consumers apply for a new credit card, the lender will conduct a hard inquiry into their account to determine their credit eligibility. These inquiries can lower individuals' credit scores because lenders view numerous credit requests as a sign that an applicant is overly reliant on credit.
To keep credit reports and scores in top shape, consumers should make sure to regularly review their account information. This is because any negative marks that appear on a person's report that cannot be verified may be eligible for removal. Identifying these items to be challenged can be difficult, which is why some individuals will contact a credit attorney for help.