What is damaging to your credit score?
The score of a person’s credit has become very important in this day and age. Your score is what creditors and lenders look at to decide quickly if you are a good risk or bad credit to give a. It is important that you learn what types of actions hurt your score so you can avoid.
1 – Late Payment
More than a third of your credit score is linked to your payment history. On several occasions the delay in payment can and will hurt your score. Pay your bills on time to avoid this.
2 – Failure to pay bill
Ignoring a payment in full is worse than paying late. Each month you miss a payment is one month closer you are to have your account charged off.
3 – Off Charge Account
If a creditor believes that it will pay its growing debt, then they will charge your credit score. This is one of the most damaging that can appear in your file.
4 – To be written off to collections
Credit card companies almost always use 3 party collections agencies to attempt collection of long overdue accounts. It is rare that the original creditor has written the debt before its sale to the collection agency. Ready status indicates that the creditor has given up trying to harvest, and sold to a third party outside the party.
5 – Loan Default
Non-payment of a charge is similar to a charge off a credit card. A defect basically shows that there several times to make the return on your loan as agreed in the contract.
6 – Bankruptcy
Bankruptcy is a blight on your credit score. In most cases is expected to seek alternative methods of managing debt before filing bankruptcy.
7 – Execution
Failure to meet the mortgage payments on time will eventually lead to foreclosure. This is essentially a form of default, but it leaves you homeless if you do not have a place to go after losing their home.
8 – Judgement
Have an opinion about logging programs that not only were not paying their bills, but the judicial system had to get involved to force the return. Both words hurt your credit history, but a paid trial is better than a slope.
9 – balances high
Having high balances means a high use of credit in relation to your credit limit. This is considered incorrect, and lower your credit score.
10 – maximized credit lines
maxed credit cards and credit limit cards make use of 100%. This is not good for your credit score.
11 – Closing balance cards
If you close a credit card and still have a balance, the card limit is reduced to $ 0 while your balance remains as it was. This essentially makes your credit card look at the most, and make your credit score drop.