9 Things You May Not Know That Affect Your Credit Score

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Most people have a general idea of what their credit score is. You probably check your score when you’re about to make big financial decisions, like taking out a mortgage or applying for a loan. Typically, financial institutions will also look at your score before deciding if they’ll lend money to you. Some of the things that financial institutions look for are unsurprising, like late payments or failure to pay back a loan. However, you may be surprised to hear that overdue library books and applying for multiple credit cards at once can also affect your credit score. If you’re wondering why your credit score is lower than you’d thought it should be, here are nine things that may be affecting your score.

1) Getting a New Phone Contract

Many people love getting the newest phone model right when it comes out. Before you head over to your cell phone provider’s store, be aware that signing a new phone contract may affect your credit score. Some cell phone providers will do an inquiry into your credit history before they approve your application. There are two types of inquiries: hard inquiries and soft inquiries. Soft inquiries don’t affect your credit score, but hard inquiries do. Cell phone providers often do hard inquiries before they let you sign the contract for your new phone. They may also do a credit check if you’re signing up for a monthly installment plan. Be sure to ask your cell phone provider if they’re going to check your credit score before you sign the contract on your new cell phone.

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