What are the main causes of a bad credit score?

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A bad credit score reduces your ability to secure loans from top lenders. You can rarely find a lender that will offer a mortgage or loan to a borrower with a credit score. However, to avoid lowering your credit score, they are certain things you need to avoid.

Late payment of bills

Paying your utility bills when they are overdue can reduce your credit score. Meanwhile, a few late payments may not significantly reduce the score unless it has become prolonged.

Making monthly payments late

If you have some monthly payments you need to make, ensure that you do so timeously. Avoid any reason that will cause a lender to issue a notice demanding their payment.

Taking too many loans

Avoid taking loans when you have not repaid the already existing ones. This could also reduce your credit score drastically. Instead, clear out all loans before taking another.

Conclusion

Very few lenders will still offer you a mortgage with bad credit. Therefore, avoid getting a bad credit score. MortgageKey can help you get a mortgage with a bad credit score. Interestingly, MortgageKey is one of the best lenders you can trust