7 Possible Signs That Your Credit Score Needs Work ...

1. You’re Rejected for a Loan

Did you apply for a credit card or loan and receive a rejection letter in the mail? If so, these are signs that your credit score needs work. Before approving a credit application, lenders will pull your credit history or check your credit score. If your rating falls beneath their minimum credit score requirement, they will not approve your application for financing.

2. You’re Paying High Rates

You might be excited to learn that you were approved for a loan or credit card. But after checking the rate, you might discover that the lender or creditor charges an exorbitant fee. Unfortunately, a high interest rate is often an indicator of credit health. If you don't qualify for the best rates, you probably don’t have the best score.

3. Your Creditors Lower Your Credit Limit

If you open a letter from your credit card company, only to learn that the company will lower your credit limit, your credit score probably needs work. Credit card companies periodically check the credit history of account holders. If your credit score drops, or if you become a greater credit risk since applying for the card, the company can reduce your credit limit.

4. You Need a Cosigner

After applying for a loan, the lender may request that you add a cosigner to the loan. This is common if you don't have a credit history. If you have credit, yet still need a cosigner, this indicates that your credit score isn’t in a good place.

5. You Don't Open Credit Card Bills

If you rarely open your credit card bills, then you're probably not paying your credit cards on time. This might seem a little far-fetched. However, I know someone who had several months' worth of unopened credit card statements. Needless to say, she rarely made a payment by the due date.

6. You’ve Fallen behind on Bills

Life happens, and if you lose your job or deal with other hardships, you may fall behind on your credit card bills. This can kill your credit score. To alleviate major issues, notify your creditors of any potential payment problems. This way, the company can extend your due date or offer other provisions to protect your credit rating.

7. You Don't Receive Pre-approved Offers in the Mail

Constantly receiving pre-approved credit card offers in the mail can be annoying. However, the fact that you receive these offers says a lot about your credit score. Some credit card companies only send these offers to people with a history of good credit. And although an offer doesn't guarantee that you'll be approved for a credit card, at least the creditor’s preliminary criteria says you’re a good candidate.

Your three-digit credit score is the ticket to loan approvals and the best interest rates. Therefore, never neglect your score. Pay your bills on time, keep your debt low and limit your number of credit inquiries. How did you improve your credit score?