Without realising many individuals unwittingly hurt their credit scores through incorrect financial decisions.

While these may seem trivial and are soon forgotten these sometimes later pop up as part of the credit history and hurt the score.

Just a few of the ways that people can end up adversely affecting their credit score are:

Loan payments made after the due date

While only some avoid repaying unsecured debts, many defer payments until later, thus skipping the due date. It may seem okay at that time but missing the payment on the due date has serious consequences as they reflect in an applicant’s credit history that might become a cause for the lender refusing to give credit.

Defaulting on mobile repayments

Getting the latest mobile phone is something most people get excited about. The one thing that most buyers do not realise is that the mobile contract signed is a credit agreement. The handset is included in the contract that is paid for as per the terms and is part of the Consumer Credit Act. Missing or defaulting on a mobile phone contract will directly impact the credit score negatively.

Skipping credit card payments

With almost 70 million credit cards circulating in the UK, these are a very popular way of making purchases. However, missing out on any of the minimum repayments can have a severe impact on the credit score. A lender will assume that an applicant skipping minimum repayments is a high-risk individual and not safe to lend any credit to.

Payday loans

Millions of people across the UK opt for Payday loans that are short-term but carry high-interest rates. This does a lot of damage to their credit profiles in the long run even if they make repayments on time. Any lender that finds Payday loans taken frequently by an applicant will baulk at lending as they would consider the applicant to be unable to manage their finances. As far as possible it is best to avoid taking these kinds of loans unless necessary and unavoidable.

Multiple loans or credit cards

Some people like to own multiple credit cards or take out multiple loans and also do make their repayments on time. However, the disadvantage of these is that prospective lenders will assume that the applicant’s financial status is shaky and this may prevent them from giving credit.

Not registered

One of the most important things that lenders look at closely is the identity of the individual and the address they live at. They get this information from the applicant’s details on the electoral roll of his borough. If you are not on the voting list of your area it is unlikely, they will consider issuing any credit.

Not having an adequate credit history

While the general belief is not taking credit is a good thing it can backfire when you do apply for credit. Lack of adequate credit history with the credit reference agencies can also impact your credit score.