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.

About the author

Lindh Foster, LLC

Connecticut Business Lawyer & Debtors Rights Attorney, Eric Foster of Lindh Foster, LLC, has been practicing law for over 25 years in Connecticut, New York and Hong Kong, China. As a Connecticut Business Lawyer, Eric Foster’s legal practice currently centers around representing small businesses and entrepreneurs, in selecting their business structure, forming their businesses, and managing their business transactions. As a former attorney at the Federal Reserve Bank of New York where he focused on the regulation of banks’ lending activities, Attorney Foster is also a passionate consumer advocate and a member of the National Association of Consumer Advocates (NACA). As a Debtor Rights Attorney, Attorney Foster enjoys advocating for and representing consumer debtors in connection with credit card, student loan and other debts they allegedly owe creditors and debt collectors.

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