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101 Powerful Tips for Legally
Improving Your Credit Score

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Facts That Hurt Your Credit

PAYING LATE

Did you know that 35% is your payment history? That means it will greatly affect your credit score if you are constantly behind on your credit card payments. Make it a habit to pay your credit card bills on time to protect your credit score. 

 

NOT PAYING AT ALL

If you think getting behind on your credit card bills is bad for your credit score, completely ignoring them is a lot worse. Every month that you miss a payment, you risk getting that account charged off.

 

HAVING AN ACCOUNT CHARGED OFF

How do you get a charged-off account and when does this happen? It’s when creditors think you’re not gonna pay off your credit card bills and so they charge off your account. People often associate it with the term “written off” but don’t be mistaken as this doesn’t mean you’re no longer responsible for the debt. You must avoid this at all costs as having this account is one of the worst things for your credit score.

 

HAVING AN ACCOUNT SENT TO COLLECTIONS

Third-party debt collectors are often used by the creditors to demand payment from you. Creditors might also send your account to collections before or after charging it off. This status means the creditor has given up trying to get payment from you because it’s hopeless and they are now forced to hire someone else to collect the funds from you.
 

DEFAULTING ON A LOAN

Loan defaults are similar to credit card charge-offs. A default shows that you failed to fulfill your part of the loan agreement. Meaning you’ve chosen not to pay back the money. 

 

FILING BANKRUPTCY

Bankruptcy should be your last option as it will make your credit score hit rock bottom. It may give you relief from some of your debt but it will also stay in your record for seven years. You need to think twice and consider other alternatives, like counseling, before filing for bankruptcy.

 

HAVING YOUR HOME FORECLOSED

Getting constantly late on your mortgage payments will lead your lender to foreclose your home. The late payments will, in turn, hurt your credit score, and approval for future mortgage loans will be more troublesome.

 

GETTING A JUDGEMENT

If a judgment shows up on your credit report, it means that a lender has such a hard time getting to pay your debt that they had to go to court. Having this show up in your credit score and it also tells potential lenders that you are not to be trusted with paying them back the money you owe and while they both hurt your credit score, a paid judgment is still better than an unpaid judgment.

 

HIGH CREDIT CARD BALANCES

One of the most important parts of your credit scores is the level of debt, measured by credit utilization. If you have a credit card balance then your credit card utilization increases and that, in turn, causes your credit score to go down. It means if your limit is at $10,000 and your balance is around $9,500, you will not have a good score.
 

MAXED OUT CREDIT CARDS

Did you know that the most damaging thing you can do to your credit score is having a maxed-out and over-the-limit credit card balance? Having a maxed-out credit card can cause serious damage if you don’t act fast enough and even then, your minimum payments will surely increase, and there’s a huge possibility for your credit score to drop by up to 45 points.

 

APPLYING FOR MULTIPLE CREDIT CARDS OR LOANS

About 10 percent of your credit score is from credit inquiries. So it’s not advisable to do several credit or loan applications within a short amount of time as it may cause your credit score to drop. To make sure things run smoothly, always keep applications to a minimum.

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Facts About Bad Credit

Given the state of our economy as well as the fast pacing of today's society, it's not a wonder that most people have some type of derogatory credit. It's one of the main reasons why seeking approval for a loan to buy either a new home or a brand new car can be a tad difficult.

Listed below are some facts about bad credit to let you know more about how it affects the entire aspect of your life. Remember, letting your credit score hit rock bottom is not something you can recover from in one day

 

HIGH-INTEREST RATES ON CREDIT AND LOANS 

Credit Scores, can either be your ticket to happiness or a living nightmare. Having bad credit means the creditors and lenders scrutinize you a lot more compared to other people who have a better credit score. It also means that you’re gonna have to pay higher rates to compensate for the risk of approving a loan for you. To put it simply, having a low credit means the more you borrow, the more you’ll pay in interest over time.
 

CREDIT AND LOAN APPLICATIONS MAY NOT BE APPROVED

Creditors and Lenders like most people are willing to take risks only up to a certain point. That means if you have a low credit score, the chances of getting your loan approved are pretty slim and depending on who you go to, they might not even consider you at all.
 

DIFFICULTY GETTING APPROVED FOR APARTMENT

What a lot of people don’t realize is that most landlords check their credit before even considering the approval of their rental application. This is to ensure that the prospective tenant can pay their rent on due time. Having bad credit can make your apartment or house hunting a lot more difficult than it should be and if you do find someone willing to rent to you, be prepared for the possibility that you might need to spend more money for your security deposit

 

SECURITY DEPOSITS ON UTILITIES

Utility companies-electricity, phone, and cable-as all other companies check your credit as part of the application process. If you have a bad credit history, you’re gonna need to pay a security deposit even if you regularly pay your bills on time to continue using their services.

MISS CAREER OPPORTUNITIES

There are certain jobs particularly those in an upper management job or the finance industry. These kinds of work you to have a good credit history. Negative items on your credit report, especially high debt amounts, bankruptcy, or outstanding bills, are going to play a huge factor in your application. They might even be the reason for your failed application as most employers are not willing to take the risk and hire you regardless of your background and stellar performance.

HIGH INSURANCE PREMIUM

Insurance companies often ascertain the risks by looking at your credit. This is to help them determine the rate you’ll pay. Though your premium rate is not solely based on your credit score. It just means that the better your credit, the lower the rate, and the worse your credit, the higher the rate.

CALL FROM DEBT COLLECTORS 

Bad credit in itself won’t warrant calls from debt collectors. Still, there’s a high possibility that if you have a bad credit score then you also have past bills that debt collectors are still hounding you for.

DIFFUCULTY START YOUR OWN BUSINESS

Like all budding businesses, startup companies need bank loans to support their starting capital. Now, if you have bad credit you will, unfortunately, have a hard time getting loans approved, not to mention the limited amount you can borrow despite having a solid business plan and data supporting your business.

Financial Literacy Resources

Are you seeking a loan for your next home or apartment? Maybe a brand new car, or another credit card? Having some trouble with your credit score? Worried about how it may affect your financial life? Well, look no further because here at T and T, we’ve got your back!  Our sources are here for you to explore! Learn how to fix and improve your credit score, discover the secret to financial success! All that and so much more are just one click away!


101 Powerful Tips for Legally Improving Your Credit Score

Before you start boosting your credit score, you need to know the basics. You need to know what a credit score is, how it is developed, and why it is important to you in your everyday life. 

Repairing Your Credit

The very first step you need to take when trying to raise your credit score is to find out what your score is and what it means.

Financial Solutions

No doubt you are wondering “what exactly is credit repair?” First, let me tell you what it is not. Credit repair is not a fix-all. It takes time and effort but under many laws and regulations, such as the Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA), you have rights you probably don’t know about, and your creditors pray you never find out.

 

12-Hour Inquiry Removal

Inquiries can remain in your credit reports for up to 2 years from the date of the inquiry. Each inquiry can drop your credit score by 3-10 points! 

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Frequently Asked Questions