Three Ways to Kill your Credit Score
April 7, 2008
Having a strong credit score in today’s society is a necessity. You won’t be able to purchase a decent vehicle or beautiful home without it. Most consumers never want to think that a credit score can dictate how you live your life. Anyone that has ever been turned down for a loan or even employment because of bad credit will totally understand this. There are a few financial decisions that will cause you to kill your credit score and become hard to recover from.
Late payments- This is the easiest way to hinder the progress of your credit score. Most businesses, banks, or employers will frown on consistently late payments for bills or other accounts. This can easily be looked upon as financial irresponsibility. If you do not have enough control over your finances, then how can someone else trust you enough to control theirs. Start paying your bills on time or even earlier. About thirty five percent of a consumer’s credit score is tied to their payment history.
Non payment- This is another easy way to sink your credit score in an instance. If you don’t pay your bills, then you are not dependable. Most financial institutions will not give you a second look if they see this on your credit report. Creditors feel that they will never see their money, so they charge off your account. Doing this will drastically decrease your credit score status. Despite the fact the account has been charged off, you still owe every last penny of the charges.
A Judgment- This is one of worst ways to have your credit score negatively affected. Not only did you not pay your bills, but the court system had to get involved as well. Having this happen to you is a definite way to sink your credit score. Many financial institutions will consider you as an unreliable high risk. Chances of you getting a loan or new credit is very slim after a judgment has been issued against you.
It is always a good idea to make regular payments on time and don’t bite off more than you can chew. If you can’t afford it now, then patiently wait until you can. Having a high credit score will give you access to many financial pathways in life. Instead of blocking your chances before you get a secure start, think about how your current financial decisions will impact your future life.
(No Ratings Yet)
Loading ...Comments
Got something to say?
