Your credit score is one of the major factors in applying for a loan. If possible monitor it before applying, See where you are and what factors effect your score. Knowing what is present on your report can give you some insight to what your future borrowing situation will look like. Listed below are 5 things that you may not think would hurt your overall score. Take a look at your credit report closely, do any of these effect you? |
1. Improperly cancelled Gym Memberships When you sign up for a gym membership, you usually sign a contract specifying the steps you would need to take to properly cancel the contract. This might even include providing a 60 day notice or having your membership for an allotted amount of time, or even having to cancel it in person with the gym. If you do not cancel the membership properly, they will still attempt to collect on the fees. Even if you cancel an automatic payment with your bank, they will still pursue the money due. After a couple of months of not being able to collect, the gym can report the unpaid balance to the credit bureau's, this will go on your credit report and adversely lower your credit score. 2. Traffic Tickets Some cities and states report unpaid traffic violations and parking tickets to credit bureaus. If you receive a citation (even from a state you do not live in) and you do not pay it, you could find that the delinquency was reported to the credit bureaus. The situation can even become more dire if it is turned over to collections. 3. Unpaid Library Fines An unpaid library fine can be reported to agencies and lower your credit score. The library can turn the fees due over to a collection agency and that will be reported. | 4. Cell Phones It surprises many people that credit checks can be required when opening a new cell phone contract. Many cell phone providers will run a hard inquiry before approving new service. This is due to the fact that providers want to make sure you can pay your bill. If your credit report shows red flags, you may have to pay for monthly service in advance. Since the credit check is a hard inquiry, it can bring your credit score down. realize that other utilities, like cable TV or internet providers may do the same. 5. Missed Utility Payments If you miss a utility payment it may result in your services being cut off, and many consumers do not realize that this can also impact their credit standing. Utility companies can report missing payments to the credit bureaus, and even turn accounts over to collection agencies. Whether it's a lapse in settling the account when you move, or whether you are having trouble making payments, the utility company can report it. Just because something is not "officially a loan" does not mean that it cannot impact your credit score. Just remember when you agree to pay something and you miss a payment there is a good chance it will be reported to a credit bureau or a collection agency. So make sure if you are going to miss a payment, keep the lines of communication open with the provider. |