Thursday, September 15, 2011

Some Reasons That Hurt Your Credit Score II

The loan default

Defaulting on a loan means you do not have fulfilled the end of your loan contract, which is similar to credit card charge-offs.

Filing bankruptcy

You can look for alternatives such as consumer credit counseling before you are going to file bankruptcy because it will devastate your credit score as well.

Having your home foreclosed Foreclose on your home

Your lender could foreclose on your home if you get behind on your mortgage payments. You credit score will be hurt and it is more difficult to get approved for future mortgage if you make late payments.

Causing a Judgment

If you got a judgment, you are considered avoiding your bills and the court will get involved to make you pay the debt you own. It is better not to have unpaid judgment though both paid or unpaid one will both hurt your credit score.

Big amount with credit card balances

The level of debt is measured by credit utilization, which is the second most important part of your credit score. It will increase your credit utilization and decreases your credit score if you have a high credit card balance which is relative to your credit limit.

Some Reasons That Hurt Your Credit Score I
Some Reasons That Hurt Your Credit Score II
Some Reasons That Hurt Your Credit Score III

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