Houston Credit Repair Expert Vanessa Perry explains 10 reasons why your score goes down in the latest blog.
Top 10 Reasons Why Your Credit Score Goes Down
Below are reasons your credit score can go down or fluctuate.
10. Collections
Collections are when you do not pay your bill and your account is sent to external collections that reports negatively on the credit report.
9. Inquiries
Inquiries will not drop your score more than 2 points, but they do lower your score.
8. Closing a Credit Card
By closing a card you are closing that line of credit history. Even if the card is paid down to a zero balance never voluntarily close a good account.
7. Maxed Out Credit Cards
Having your cards maxed out will lower your score. Make sure to keep your cards paid down after they are charged up at least once.
6. Inactive Accounts
Be careful with not using credit cards. If your account is inactive the lender may close the account for inactivity. Use your accounts at least once a year to avoid this.
5. Foreclosure
Foreclosures are a red flag especially when wanting to purchase a new house. Be sure to avoid foreclosure at all cost.
4. Bankruptcy
Bankruptcy is not necessary in all states. Make sure to do your research on your state laws before filing.
3. Missed or Late Payments
Despite popular belief Late Payments hurt credit the hardest and fastest. Make sure to pay your bills either on time or within 29 days. 30 days and it is considered a 30 day late payment on your credit report.
2. Car Repossessions
A repossession is like a foreclosure to cars. Make sure to avoid this if you are needing or planning to get a car in the future prior to credit repair.
1. Short Sales
Short Sales show up as a foreclosure on your credit report. Make sure if you plan on selling your home to get the full asking price and to payoff the loan for the amount due if it is not paid in full after closing.
Impeccable Credit
Impeccable Credit Services has been serving the Houston area for over 17 years. We specialize in credit repair services as well as educating our clients on how to build their credit. Just by repairing the credit itself does not build the score. We do both simultaneously in order to have Impeccable results. Most clients take about 6-12 months to repair. If you have any questions regarding please feel free to contact us at 713-378-1500.
