Today, a high credit score opens up financial doors – a tribute to person’s ability to control their spending and manage their savings. The message is loud and clear – good credit is a fundamental part of having all the buying power you could ever want. However, there are a few weird ways you can damage your credit score and you’ve probably never given them a second thought. Here’s your chance to wake up and make sure your credit score is in the best possible place. Here are 3 little known ways to make your credit score plummet.
The Cost of Not Paying Library Fines
Have you ever forgotten to return a library book before it was due? In the past, owing the library a few bucks wasn’t a huge problem. However, because many local governments have found themselves in a budget crisis, they are looking for more effective ways to bring in more money to fund important services provided for the community.
What this amounts to is many local libraries are referring these debts to debt collection agencies. Once these agencies add on their penalties and fees, the amount owed can balloon from a few dollars to hundreds of dollars. Not to mention that these debts are reported to the three major credit bureaus which can really shoot down your credit score.
Ignoring Parking Tickets Can Cause Big Problems
Parking and speeding tickets are looked upon as debts to local county and state governments. And in most cases, unpaid tickets are turned over to collections agencies who pile on penalties and fees in addition to reporting the debt to credit reporting agencies. These debts can wreak havoc on your credit score for years to come.
Not Paying the Balance Due in Full
Anytime you settle a debt for less than what is owed, you put your credit at risk. The portion of the debt that has not bee paid will show up on your credit report as a new charge-off. Whenever you are negotiating with a creditor, do your best to prevent this from occurring. The impact on your credit report can be long-lasting because it is almost as if you are still being punished long after the debt has been repaid.
In one fell swoop you can cause your credit score to dip and shut off your ability to make big purchases without the pain of high interest rates. Stay on top of your credit no matter what. Make protecting that all-important FICO credit score your main priority. Realize what could be hurting your credit and correct the error as fast as humanly possible.