The Credit
Score. This has become increasing more
vital in our society. Whether we are renting an
apartment, buying a car, applying for a home mortgage or a new job,
our credit history is routinely checked. This means as
consumers, we need to be aware of what will negatively impact our scores. Here are
some simple things you might do that will hurt your
score.
- Co-Sign on a car loan: You get a hard inquiry on your
report which lowers your score and you risk that the co-signer does
not pay. - Neglect to return library books: If you have an overdue
fine, it will go to a collection agency and could be reported on
your credit. - Pay
your credit cards late: Making late payments on your
credit card bill is almost as bad as not making a payment at
all. Failing to make a payment will mean additional late
payment penalties and a mark on your credit report. - Pay your taxes late: You get late penalties and risk the
IRS filing a lien against your property. - Accumulate parking tickets and neglect to pay them will lower
your score. - Apply for too many credit cards at the same time: Too
many hits on your credit at once will raise a red flag on your
report.
Having too little available credit (not enough credit
cards): Having no credit or not
enough available credit indicates that you might not be
responsible to pay your bills and that you will suffer in an
emergency situation.
Negative information will be on your credit
report until 7 years after the date of delinquency. There
are some exceptions to this rule including bankruptcy
and back taxes which may stay on your report for up to 10
years.
If you have credit reporting problems and need help improving
your credit score, contact SmithMarco for a free consultation.