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

Some Reasons That Hurt Your Credit Score I

Credit score is important to everyone, by with you will be considered to be creditworthy or not by creditor or lenders. In order to stay away from them you need to find out which action hurt your credit score.

Delay payment.

You payment history will count 35 percent of your credit score. You credit score will be hurt heavily if you keep delay payment on your credit card. Prevent your credit score from being hurt by paying your credit card bills on time.

No payment or miss paying to your credit card

It will be much worse than paying late if you didn’t make payment or forget paying to your credit card. If you miss a credit card payment this month, you are one month closer to be charged off then.

Account got charged off

One of the worst things is your account got charged off, which will hurt your credit score much and bring your account into a very bad status. So make sure to pay your credit card bills on time and the creditors will not charge off your account.

Account sent to collections

Your payment can be collected by third-party debt collectors so creditors will be able to use it. A collection status shows that the creditor gave up trying to get payment from you and hired someone else to do it. Before or after your account got charged off they could send it to collections. 

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