cridit report

7 Things You Do That Can Really Mess Up Your Credit Scores

  • Allow your home to be foreclosed on.  This will have a smashing impact on your credit scores and will stick with you for 7 to 10 years.  You can plan on renting or living with mom for at least 7 to 10 years.

 

 
  • Have a repossession of a car or mobile home on your record.  Most people don’t understand that even if they voluntarily call the mobile home company or car finance company and tell them to come get the home or car because they can no longer make the payments that this will still go on their record as a repossession and they are still liable for that debt.
  • Either don’t pay or make late payments on your student loans.  If you can’t make the payments at the time then try to get your student loan deferred for a period until you can make the payments on time.  I had a client who only owed a balance of $800 on his student loans and was late on three or four payments which caused his credit scores to drop close to a hundred points.
  • Allow a debt to become a judgement on your record.  Once a collection becomes a judgement then it not only impacts your credit scores but definitely must be paid off before you can obtain a mortgage on a home.  The judgement will become a lien against the new home and the mortgage company won’t allow that.
  • Allow unpaid taxes to become a tax lien on your credit report.   This is another debt that would have to be paid before you could get a mortgage on a new home.
  • Have late payments on your mortgage.  This you can recover from with time.  Once you have made your payments on time consistently for 12 months then your credit scores will come back up.  You are better off to make your credit payments late than your mortgage payments.
  • Have late payments on your automobile loan.  This too you can recover from with time by making payments on time consistently for 12 consecutive months.

You can correct most of these things with some time and understanding of the process. 

If you currently don’t have any or, few of, these items on your credit history then you definitely can improve your credit scores.

 

 

 

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