Credit Score - Quicken Loans Zing BlogIf you’re like me, you forget things. A lot of things. Thankfully, I have sticky notes to get me through life, although sometimes even they can’t help me remember everything. I’m talking about things like paying rent, my car payment and utilities. If it seems ridiculous that I have a hard time remembering to pay the same bills every month, it is, but that’s a different conversation. This conversation has more to do with the consequences of forgetting to pay bills on time, among other things that could impact your credit score.

Late Rent

Say your rent is due the first of every month, with a grace period until the fourth. You forget and pay it two days late. No big deal, right? Depending on your landlord, that isn’t necessarily true. In fact, landlords can pay to report your payment history to the credit bureaus. This is typically unlikely, although property management companies have been known to take this route. Your best bet? Pay your rent on time and don’t take the risk.

Ignoring Fines

I’ve received a parking ticket (or handfuls of parking tickets) in my lifetime. If you think all you have to worry about is paying the ticket, that’s not always true. Unpaid parking tickets and even library fines can go to collections, which hurts your credit score. The collections agency can report your outstanding amount to the credit bureaus. Parking tickets and other fines are bad enough. Don’t make your problems worse by not paying them off in a timely manner.

Medical Bills

Do you know what the number one reason for bankruptcy is in the U.S. today? If you guessed unpaid medical debt, you’d be right. What’s worse, if you have a large amount of medical debt and have to file for bankruptcy, the damage can last upwards of a decade.

Applying for Credit

Every time you apply for a line of credit, your credit report is pulled. While an occasional hard pull won’t set you back too far, a large number of inquiries over an extended period of time show the lender that you’re desperate for credit. Keep in mind that inquiries within the same 14-day period appear as one inquiry, so try and compare options within that time period to limit the damage.

Financing

As tempted as you may be by a 0% interest financing plan, you may be better off avoiding it. That’s right, I’m telling you that even if you have the option of 0% financing on a new 60” TV, it may be in your best interest to pass it up. Why? Any time you finance a purchase, you open up a line of credit for that exact amount. When you make payments, you maximize that line of credit, which increases your debt utilization ratio. These loans are often looked at as “loans of last resort,” which we’ll get into soon.

“Loans of Last Resort”

Life happens. For example, your car breaks down and requires a costly repair, or you need a large chunk of change for a home repair. If you’re low on cash, you take out a payday loan to help you pay for what you need. These loans are frowned upon by other lenders and could lower your credit score.

As you can see, there’s a lot to watch out for when it comes to hurting your credit score. What other types of problems have you run into that negatively impacted your credit score? Let us know in the comments below!

Related Posts

This Post Has 8 Comments

  1. Im trying to work on my credit my ex did after I left him, I’m remarried and have the money.i just need to get a loan to buy a house. Can u help

    1. Hi Jessica:

      We can absolutely help give you some advice at the very least to try to get you where you need to be. The first step in dealing with your credit is just knowing what you’re facing. I’m going to suggest you check out our friends at QLCredit. You can get your VantageScore 3.0 credit report and score from TransUnion for free without affecting your credit. We also have this blog post that has some great general tips everyone can follow to try and get their credit up to snuff. Finally, once you’ve done these things, I’m going to recommend talking to one of our Home Loan Experts at (888) 980-6716. We may be able to work with you to come up with a game plan to clear any final hurdles.

      Thanks,
      Kevin Graham

  2. My husband and I are trying to buy the home we are renting at this time. We love it! We have both been previously married and had some bad debt taken on by that. We have been working on our Credit, have good jobs But, Still need help to get there . Any Help or suggestions would be Great , they are wanting to sell in the next few months and we wan to be ready to buy when they are.
    THank you in advance,
    Samantha Idlett

    1. Hi Samantha:

      I’m going to recommend a few things. We have this blog post on improving your credit score to get ready for a mortgage. If you check out QLCredit, you can get your report and score for free and it will give you tips on how to improve. Finally, you can speak with one of our home loan experts about suggestions by calling (888) 980-6716. They may be able to recommend a strategy to help.

      Thanks,
      Kevin Graham

  3. My husband NFL I have been working with a credit company for a little over 5 months the stuff on my credit is old he also makes a great income however we are tired of renting have been for 7 years He works hard and deserves a homega of his own

    1. Hi Brittany:

      I see you’ve reached out to us about loan options. I’m going to have someone reach out to you to take a look at your credit and work to help you get it where it needs to be. Thanks!

      Kevin Graham

      1. As you can see its very late and I am very tired. I leased a new Kia in September 1917. At that time my credit score was 850, what happened. I am 71 years old and trying to pay off everything that I owe. I have one Visa card, one Shell card. All of my payments are on time because they are on Auto Pay.
        Please do not call me, as I don’t answer the phone if I don’t recognize the number. I will call you in the morning.

        1. Hi Irene:

          I see you’re working with us. I’m going to pass this along to our Client Relations team so they know your communication preferences. Have a great day!

          Thanks,
          Kevin

Leave a Reply

Your email address will not be published. Required fields are marked *