I’m always trying to remind people about just how important their credit score is, and not only to them, but to everyone around them as well.
Unfortunately, a good number of people don’t realize this fact until it’s staring them in the face and refuses to back down. Playing a game of chicken with your credit (and finances in general) isn’t always the best idea, yet people seem to love to play it as long as they can until they’re searching for a way to fix credit fast, generally turning to credit counselors and credit repair companies for help.
In the interest of helping you fix your credit before things get too desperate, here are 3 of the top credit score killers to avoid.
1. Late payments. We all know that making a payment late (or missing it altogether) doesn’t look good on your credit report. What most people don’t realize is how badly even one missed payment can reflect on your credit report, sometimes deducting as many as 20 points off your score. The longer you go without making a payment, the faster your score will fall. Always try to make the minimum payment on your credit accounts, and ALWAYS on the due date.
2. Accounts in Collections. If any of your late payment accounts goes into collections, then your credit report is really in for a world of hurt. Collections can drop your score anywhere from 70-100 points, depending on the account, making you look completely financially irresponsible in the eyes of creditors. This could translate into rate hikes and a door slammed in your face if you should ever try and apply for new credit. Again, this can be avoided simply by paying bills on time.
3. Too many inquiries. This last point is an often overlooked one, and while it’s not as detrimental on your report as late payments or collection accounts, having too many recent inquiries can add up over time if you’re not careful. Luckily, you only run the risk of having too many “negative” inquiries if you are actively searching for new lines of credit and are consistently rejected. This makes you appear desperate to any other lenders or creditors who take a look at your report, and that’s never a good sign.
Use this guide to help you dodge the minefield of bad credit pitfalls out there and keep your credit in to form.
John LeBlanc has written more articles on credit repair than he'd care to count. For more information on San Diego credit repair services, give My Credit Group a call.