A Good Credit Score

A Good Credit Score

Best Ways to Ruin Your Credit

If you want to ruin your credit, there are plenty of opportunities out there. The advanced nature of credit reporting in today’s business world makes it nearly impossible to hide your mistakes. Every payment that you make over a seven year period is available to all credit providers who seek out your credit report. What are the quickest ways to destroy a perfectly good credit record? They are a combination of poor planning and poor financial decision making.

When you look at your credit report, you will want to see a blemish free record. Doing something to damage that will cost you the chance to gain financing and low rates on important loans in the future. One of the best ways to get in a credit pickle is to have constantly late payments. You might not think it is important to make those payments on time, but your creditors certainly do. They record each late payment, even if it is only a couple of days late. In addition to that, you will have a late fee added to the account.

In BankRate’s breakdown of credit ruin, which can be read at Wreckers, they document some of the biggest problems that new credit takers often go through. One of the most important things to keep in mind is your credit report. Even if you think you have made every payment on time and you have a perfect record, it is still important to look over your credit report every once in a while. After all, you can access one free credit report each year by going to FTC’s free reports. There are sometimes mistakes on the report that could impact your credit for the long term if they are not fixed immediately.

General disregard for your balances will kill your credit rating quicker than anything else. Just because you have built up large balances doesn’t mean you can neglect them. The more you let them go, the more the balance will grow and the worse your credit will be. You can dodge the collection calls, but there is no way to get around the negative consequences that you will undoubtedly suffer as a result. It is better to face the problem and work on a solution with your creditors than to hide from the financial problems.

Responsibility is the key to maintaining good credit. If you fail to handle credit cards or personal loans in a responsible manner, you will be staring poor credit in the face sooner rather than later. It won’t kill your credit to have a couple of late or missed payments, but a pattern of poor credit use will impact your credit score negatively and color the perception for future potential lenders. Then, when you need to obtain credit for something like a home loan, you will have a hard time negotiating because of your ruined credit rating.

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