How Much These Monetary Habits Can Hurt Your Credit Score
A loan can affect everything from your monthly bills to your ability to buy a home . So if you have a solid result, you want to keep it the same. However, there are a few common financial mistakes that can bring your score down completely, and Credit.com tells us how badly.
There are several common financial difficulties that affect someone’s credit rating, but if your rating is high, the fall can hit you particularly hard. Credit.com details how much success you can expect with the following:
First missed payment. Payment history is the most important component of major credit rating models. So your first 30-day delay on a bill could really cost you. In fact, recent late payments could lead to a 90-110 point drop on a FICO score of 780 or higher.
Debt Settlement : Allowing debt to be repaid could also drop an equally good estimate from around 105 to 125, according to the FICO test case.
Making the most of a credit card: While this won’t do the same damage as a late payment, someone with a good 780 would have to endure anywhere from 25 to 45 points for using this entire available credit limit, in a test scenario run by a credit scoring model FICO
If your credit is satisfactory or bad, you will still get hit and you can see additional numbers on FICO . Whatever your outcome, beware of these habits. For more details please follow the link below.
Photo by Morgan .