SGI Realty One Real Estate Blog

Hey Everyone-

Credit scores and credit requirements are a hot topic.  I thought I would compile a list of things to AVOID when trying to maintain or build a great credit score.

7 Worst Things You Can Do To Your Score:

1.  Late Payments:  30 Day, 60 Day, 90 Day late payments ALL can affect your credit score.  Don't believe a 30 Day late payment won't hurt!

2.  Collection Activity:  Avoid any late payments going to collections.  This is a red flag to lenders and really can hurt your score.  In these cases a third party is contacted on behalf of the lender to acquire the missed payments and they will report this activity to the credit bureau and can affect your score up to 7 years.

3.  Charge Offs:  If collections cannot manage to get the payment from you the lender will call off the debt and puts your credit report on notice for 7 years.

4.  Public Recordings:  Bankruptcies, tax liens, and judgments alike are killers for your credit rating.  These will affect your score 7 years or more!  Unpaid tax liens will never go away!

5.  Settlements:  If you pay some of your debt in a settlement this can still affect your score negatively by a settlement notice being reported to the bureau.

6.  Foreclosures:  If you can't pay your mortgage the lender will foreclose on your home and this will affect your score for 7 years.

7.  Repossession:  When you can't pay your car loan a repo collector will visit you (often times without even knowing it) and take your property tied to the loan.

7 thing to avoid that can affect your score for 7 years!  Keep an eye on these and avoid them at all costs so you can have a healthy score and lock in a great rate!

Til' next time-

Tim D. 

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