Feb 19, 2013 Walt Wojciechowski
Many Americans have had to cope with poor credit scores since the inception of the Great Recession. When the economy took a dive, many people took a pay cut or were laid off altogether, which often affected their ability to pay off debts and other bills on time. As such, many are unable to obtain a traditional loan now.
However, this doesn't just apply to those burdened by the recession. There are certain things consumers do regularly that can result in garnering a poor credit score. For example, BPT reported, paying bills late can be harmful. While some companies may allow this once or twice without levying late fees, the action can actually have more far-reaching results.
Moreover, the news provider explained, maxing out a credit card and inquiring about opening a new line of credit can also result in decreases in the score. This is because credit bureaus are very cautious about the possibility of defaulting.
Even if an individual experiences a decrease in his or her credit score, there are alternative means of building credit to more easily qualify for loans and other financial options. For example, making regular payments on utilities bills can help individuals create a good Payment Reporting Builds Credit score.