A good credit score can be hard to come by for many people these days. If you are still in good credit standing, consider yourself lucky. The trick to keeping that good credit score is knowing what things can do the most damage and work to avoid those. Here are the top five things that kill your credit score:
1. High balances — high balances are the first thing to happen in a series bad events that can damage your credit score. Having a balance over 30% of your available credit line can quickly chip away at your score. Keep a good balance between debt and available credit to keep your score healthy.
2. Paying late — missing a payment isn’t always intentional, perhaps you went out of town and forgot about your bills. Creditors can be quick to report a missed payment to the credit bureaus, some as soon as 30 days. Even a single delinquency notification and do serious damage to your score. Set reminders or mark due dates on your calendar to avoid being late.
3. Entering collections — once a creditor has sent your account to collections you can guarantee your status is considered delinquent. The double mark of a delinquency and “currently in collections” is not something you want on your credit report. If your account is in collections contact your lender to negotiation a resolution and request the collections status be removed from your report.
4. Having a lien — anytime a creditor is applying a judgment or lien to your property your score is likely to take a hit. These types of legal matters can quickly escalate out of control, and if your property is seized your asset value will also drop. If you are being sued by a creditor you need to speak with a Bryan bankruptcy attorney right away.
5. Walking away from a debt — some people think that walking away and not paying at all is an option for resolving debt troubles. Even if you don’t have any assets on the line, these debts and your damage credit can haunt you for years to come. There is always a solution to help with your debt problems, contact a Bryan bankruptcy attorney to get help.