Personal Finance: 3 habits that affect your credit history

Personal Finance: 3 habits that affect your credit history

Personal Finance: 3 habits that affect your credit history

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For many, credit history is one of the most important things to watch out for in personal finance. We spend much time watching costs and striving to make our payments on time to improve our credit score, we might overlook the habits that could actually be damaging it. That is why it is important to pay attention every action we take regarding our personal finances. Here are 3 ways you could be damaging your credit history, instead of improving it.

1. Not checking your credit report

 Your credit history is a report issued by the Credit Bureau, which summarizes how responsible you are managing your credit, whether cards or credit like car loans or mortgages. Your report is a detailed history of your credit since you started managing it. It’s good to regularly check your credit history, not just when you are interested in processing a loan or a new card. Reviewing your history every few months helps you control your spending habits and protect yourself from identity theft.

2. Making only minimum payments.

 If you usually live at the edge of your credit limit, you automatically become a risk to the lenders. According to the opinion of experts in savings, you should never use more than 30 percent of the total credit line of all your credit cards. Having a low credit balance low will help you, not only to make your total payments on time, but to acquire a better credit score.

 3. Opening and closing accounts

 In addition to opening many different accounts at the same time, canceling them also affects the evaluation given by banking institutions. The seniority of your credit history represents approximately 15 percent of your overall credit score. The more you have been managing credits, the better your creditworthiness is considered. In addition, when requesting credits or opening new accounts, the institutions have to review your history and check each of the current credits you have. Making these types of inquiries too many times in a short period of time has a negative impact on your credit history.


There are many ways to use credit responsibly, you just have to make sure you are paying attention to the details of every action that impacts your personal finances. To have a better financial control, join Glass. With Glass, all your banking and cryptocurrencies transactions, are consolidated into a single platform, so you always know where your money is.