3 Things You Didn’t Know Could Impact Your Credit Score

You already know the basics of what affects your credit score. From late payments to stretching your credit limit, you can hurt your credit score in many different ways.

But did you know that renting a car when you’re on vacation can affect your credit? Or that canceling a credit card once you’ve paid off your debt could too?

Here are three factors you might not have known could impact your credit score.

Renting a vehicle when you’re on vacation

A rental car is a great way to get around when you’re vacationing somewhere a long way from home. But when you rent a car, you usually need to make a deposit.

Some rental companies will pull your credit report when you use your debit card rather than a major credit card to secure your deposit. This hard credit check can dig into your credit score, docking your important credit points.

Using the wrong software on your computer

Peer-to-peer (P2P) file-sharing became popular 20 years ago in 1999 after the invention of Napster. It’s considered one of the easiest ways to share games and music with friends and family members.

But it’s important that your software has been installed correctly before you use it. According to the Office of Nevada Attorney General’s Bureau of Consumer Protection, P2P software can provide access to your private files to many people if it isn’t set up properly.

When you leave your private files open to public view, you run the risk of identity theft. Identity theft is a risk throughout the year, but it’s especially common during the holiday season, and it can quickly wreck your credit score.

Canceling a credit card

It’s great that you’ve finally paid off your credit card debt. You might feel like you’re ready to close your credit card account and never have to think about going into debt again.

But because your credit history makes up 15% of your credit score, you can actually hurt your credit score when you cancel a credit card. That means closing an account hurts some of your credit history and your credit score.

There are many factors that can impact your credit score if you’re not careful. But by paying close attention to how you spend your credit and managing your finances, you can keep your credit score in good shape year-round.