When we have a low credit score it is harder to do things in life.  We may notice that it is harder to get loans, we aren’t trusted as much when it comes to money, and the interest rates we get on things is usually higher than we’d like or higher than someone with good credit.  Your credit score affects you tremendously and can just make situations harder.

If you’re looking to improve your credit score you first need to realize why it’s so low.  Listed below are a few reasons your credit score may be lower than you’d like.

Reasons for a low credit score:

Debt -  First of all, debt is one of the main reasons for a low credit score.  If your credit card has thousands of dollars on it that aren’t paid off yet, you’re instantly going to have a lower score than someone with little to no debt.

Young age -  This isn’t something you can control, but if you’ve had a credit card open for just a year or two you’re going to have a lower score.   You don’t have enough credibility yet, and the lower you accounts are open, the more you can prove better credit.

Credit cards open -  If you have too many credit cards open, your credit score will drop.  Simply because the more credit cards you have the more debt you can pile up.  This calls for more problems when companies look at you.

Late payments -  If you are bad at paying off your credit card on time, expect to have a lower credit score.  It means that you’re not “responsible”, and can’t handle paying off your credit cards.  If you can’t do this, most companies aren’t going to want to lend you money because they’ll expect you to pay them late as well.

Closing cards -  Closing too many credit cards is another reason for bad credit.  The card that you may have had for 10 years that is giving you the little bit of good credit can really drop your score if you close it.

There are a few different reasons for having a low credit score.  If you’re dropping to the 500′s and below, you really need help.  Pay off your debts, don’t open anymore accounts, and maybe get some help from a professional.