What Kind of Items Can Negatively Impact My Credit Score?
As a Hartford County, Connecticut Consumer Credit Attorney, Clients ask me: what are the typical negative items that can impact my credit score?
Well, there’s the obvious ones like bankruptcy or lawsuits being filed by your creditors against you. However, there are also some less obvious ones. The first is too many credit inquiries. This can happen when you go to purchase a car and you go to multiple dealers. They sometimes will do a credit inquiry if you indicate that you might be borrowing money to purchase the car.
In addition, there are a lot of other ones like:
- Late payments.
- Settling the debt for less than the full amount due.
- Closing too many of your accounts,
Surprisingly, closing too many of your accounts can lead into a reduction of your credit score. This is because there’s a ratio of your debt to available credit and once you close a number of your credit accounts your debt to the credit available ratio goes down.
This informational blog post was brought to you by Attorney Eric L. Foster, an experienced Hartford County, Connecticut Consumer Credit Lawyer.