Debt and credit score: even the words themselves are ugly and somewhat scary. Whether it’s our general fear of being graded on anything or the short, staccato sound of the word “debt,” many of us would rather not include those words in our vocabulary. Unfortunately, we have to. Understanding what our credit score is and what factors can negatively impact us can help ensure a healthy financial outlook for our entire lives. Even if you’re currently in debt, it’s a good idea to understand how these three factors can negatively impact your credit rating in a massive way.
Just a Little Late Is Too Late
When you consider your credit score, one of the biggest factors that goes into the calculation formula is your payment history. 35% of your overall score is actually based on your payment history. Generally, being late on payments will quickly impact your rating negatively. Luckily, one of the best ways to address a poor credit rating is to make regular, on-time payments. If you have a chance to run your credit report and see multiple entries for late payment, it’s time to figure out a better way to pay your bills on time. Visit plaingreenloans.com whenever you’re in danger of making a late payment. Remember, while not all companies report on late payments, credit companies and many utility companies do.
Charge Off Doesn’t Mean Gone
Most people find themselves in the difficult position of being unable to pay one or more bills at some point in their life. Failing to pay your credit card bills has a negative impact on your rating, but it doesn’t stop there. After a predetermined period, companies will “charge off” your debt. This doesn’t mean the debt goes away; it simply means the company does not believe it’s collectible. Having one or more charge off accounts on your credit rating is a red flag for any financial institutions you’re hoping to borrow money from. Instead of not making your payments, visit plaingreenloans.com to help get you back on track.
Foreclosure – More Than Just Losing Your Home
With foreclosures reaching epic numbers in the country, more and more people are faced with the word “foreclosure” on their credit report. Unfortunately, it’s one of the most negative items that can appear. If you’ve had a foreclosure, there isn’t much you can do about it, so it is important to work closely with your loan holder to rehab your loan before you get to the foreclosure point. If you are having trouble making a mortgage payment, visit plaingreenloans.com for temporary cash relief.
Having a bad credit score isn’t the end of the world, but it can make things very difficult. Stop being afraid of the words “debt” and “credit score” and start taking control of your financial future.
