Almost every other individual in UK has, atleast at one point in their life, went through the horrible ordeal of a bad credit record. Mostly, people are totally clueless about how their credit score fell down so drastically. But before you start seeking solutions to improve it, you must know what leads to a bad credit score. Below we have listed some of the causes that contribute in decreasing your credit score.

Late payments

Not making your payments on due date is one of the leading causes of a bad credit score. Miss one payment and the score declines so much that you are taken aback. You should not ever miss a payment if you want a stable, good credit score.

High credit card negligence

Not paying your credit card debt leads to a poor credit rating. People who are not good at maintaining their credit limit in a balance are usually the people who have bad credit records.

Exceeding credit limits

Exceeding your credit limit is another reason you have a bad credit score. That's a big turnoff for money lending companies. Going overboard on your credit card limit indicates you will not be able to pay the money on time. Also, the monthly fees you have to pay on the credit card increases.

High living standards

Spending ridiculously to improve your lifestyle is another reason you end up having bad credit score. One keeps on taking debts to buy luxuries that soon become impossible to manage. Use the amount of cash you have for the luxuries not your credit card if you want to maintain a balance between healthy spending and overspending.

Previous credit history

As they say your past always influences your future, they say it right. Your previous credit history poses a direct threat to your future credit rating if it's a bad one. You should keep analyzing your past credit history, see the errors and try not to commit those mistakes in future. Always maintain a balance so that your future rating doesn't get affected by your present's follies.

These were a few factors that people tend to ignore, contributing greatly in your bad credit rating. Head over to our blog at Wall Phones to get detailed information regarding how you can improve your credit score.