Several factors can negatively affect your PLUS Score. However, through good financial planning and conscientious bill-paying practices you can avoid common pitfalls that lead to lower PLUS Scores.
First, applying for several credit cards or loans within a short time span could hurt your score. Some creditors may interpret this activity to mean that you’re having financial trouble or are simply taking on too much debt. (Creditors will also look at your salary when considering these factors). These inquiries stay on your report for up to two years. It’s important to keep inquiries to a minimum, especially those related to applying for more credit. Furthermore, this is a simple step to take to protect your credit rating.
Another factor that could lower your PLUS Score is your overall balance versus your total credit limits. Your score may be lowered if your balances are close to your credit limits. The bottom line here is to be sure not to max out your credit cards. Additionally, failing to make scheduled payments and paying bills late will also lower your PLUS Score. Be sure to pay the specified amount by the due date. Also, be sure to scrutinize the public records section of your report. Any information here is very detrimental to your PLUS Score. Be sure that this area stays blank. If for some reason you foreclose or default on an account, be sure to seek the advice of a credit counselor to find out of the best course of action to improve your credit rating. Finally, check your report for any errors on your report which may be hurting your score.