A lot of factors can do serious damage to your credit score, and it won’t only be limited to the irresponsible use of a credit card. Other loans and forms of credit also hurt your credit history, and may have serious effects on your financial health. Aside from credit card payments, other loans or bills like unpaid apartment rentals and medical bills can also hurt your overall credit score. Here are five ways to hurt your credit score.
Late Credit Card Payments and Large Balances
Late credit card payments not only burden you with additional surcharges and fees, but it can also put a black eye on your credit history. According to credit report experts, poor payment history accounts for 35% of your total credit score, and even a single late payment can quikcly chop-off 100 points from your score. If the credit card you’re using also carries a really large balance, it would also send a bad signal to various lenders and creditors.
Unpaid Medical Bills Can Affect Your Credit Rating
Unpaid medical bills can do a lot of damage to your credit score. Once these are turned over to a collection agency, the bad news will certainly be circulated aorund the lending community.
Non-Payment Of Apartment Rentals
Defaulting on your apartment rental payments can also add to your credit rating woes. Your landlord can actually report that he or she has evicted you for defaulting on your apartment rent, and this would surely sne dshivers down most property management companies and mortgage lenders.
Mounting Utility Bills Paint a Bad Credit History
While late payments on utility, cable TV and telephone bills are not often reported to credit agencies, a number of US states actually report these types of delinquencies to collections agencies. However, for those who pay their utility bills on time, this practice may actually do a lof of help in enhancing their credit rating.
Unpaid Library Fines And Parking Tickets
Even small stuff such as an unpaid $25 library fine or $50 parking ticket, can inflict a painful pinch on your overall credit score. Today, most municipal and city governments are turning to collection agencies to salvage hese unpaid bills, especially if your dilly-dally on repaying them. For example, if a collection agency reports that you weren’t able to pay overdue parking tickets or library fines, this could make your credit score drop by as much as 100 points. Ensure that you pay your library fines or parking tickets on time, because you won’t know when they send these bills to the collection agencies.
While late credit card payments, or mounting medical bills and unpaid parking tickets may seem like small bumps on the credit highway, these actually help to slowly mangle your credit rating, and may significantly alter your plans of buying a new home, getting a new car, or paying for your child’s college tuition.