Continuing from Did You Know These Things Could Damage Your Credit? (Part 1)¸ here is some additional information regarding unconventional things that may damage your credit score. Being aware of how these practices can impact your credit rating can help you avoid inadvertently damaging your otherwise good credit. In addition to hard inquiries on your credit, the following could hurt your credit score:
- Not using credit cards – While credit cards can get you into financial trouble if you are not responsible about how much you purchase with them (and if you forget to or are unable to make the monthly payments on time), using your credit cards is crucial to establishing a credit history and building a good credit rating.
In fact, not using credit cards you have or not having any credit cards to use can, in some cases, be as damaging as not paying your bills on time. The key is to use them responsibly, pay the monthly bills on time and, whenever possible, not maintain a balance on the credit cards.
- Financing the cost of home furniture – Many furniture retailers offer deals that involve zero interest for the first year (or more) of financing your purchase. While this may be an attractive offer on the surface, particularly for individuals who may not have a chunk of cash to drop on such a large purchase, these offers are seen as “last-resort” types of loans and, as such, could make borrowers appear to be high risk.
Additionally, accepting such offers will immediately put a large balance on your credit report, which will, in turn, dramatically inflate your credit utilization rate. The higher this rate climbs, the more likely your credit will suffer from it.
- Not paying city fines – City fines such as parking tickets may seem inconsequential in the scheme of things, but failing to pay them can harm your credit score if the unpaid bill is eventually sent off to a collections agency. So if you get a ticket, pay the fine as soon as possible so you don’t run the risk of forgetting about it.
Colorado Bankruptcy Lawyers
If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. For more than 35 years, Mr. Clarke and his diligent support staff have been successfully helping our clients resolve even the most complex bankruptcy cases for both individuals and businesses alike. Our experienced legal professionals are committed to providing each of our Clients with the personalized debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible.
For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950 or email us some details about your situation by clicking here.