Main Menu

Things that Will Hurt Your Credit Dramatically

Anyone with credit already knows the negative effects associated with not paying your bills on time and things like bankruptcy. Most people do not realize the difference in how each of the credit reporting agencies report. Each of them sees various debts as more significant. The same thing applies to other flaws within your credit report.

Regardless of how each of the credit bureaus report, there are some things that you should always avoid getting on your report. These types of things are damaging and hard to get rid of when trying to repair your credit. One of the first and probably worst types is bankruptcy. People may think that they have no other option and decide to do this, but caution advised when doing something such as this. This causes a mark on your report lasting for ten years and offers no hope in any type of fast credit repair. Also you can have credit denied to your for basically any reason.

Another thing to avoid is foreclosure. When things get to the point that you are no longer able to make payments, then usually the bank starts to move into the foreclosure process. By doing this, they are trying to get their money back by selling your home to someone else. While providing the services, the credit rankings of the business will be checked through the bankruptcy lawyer san diego. The services will be optimum for the starting of the business again to earn profits. 

The start of the foreclosure process, places a mark on your credit report that takes seven years before it taken off your credit report. Once the ball starts rolling, there is little you can do, regardless to whether you are able to make a deal with the bank and keep your home. This and paying late places a negative mark on your credit report.

Charge offs are another thing to avoid, since they stay on your credit report for seven years even if you pay the debt to a collection agency. Usually a charge off results when someone does not make payments on a debt owed for 3 to 6 consecutive months. After that they write it off as a charge off and either submit or sell your debt to a collection agency.

Not paying your debt owed to a collection agency can lead to judgments against you in court. If it comes to this, it shows how you did not pay your debtor and then forced them to take you to court. This has a huge impact on your credit score, due to the drastic method a company had to resort to legal action in order to get the money that you owed to them. These also remain on your credit report for a period of seven years

Owing federal or government state taxes that turn into one of the many, kinds of tax liens can really hurt you. What this does is prevent you from access to any financing for anything until you pay the debt in full. There is very little chance to repair your credit with any type of tax lien.






Leave a Reply

Your email address will not be published. Required fields are marked *