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Getting credit is a useful tool and when comes to handled responsibly allows us to obtain credit cards, loans for homes, cars, and other big-ticket items. The better we manage our credit card responsibility, the better the terms that are offered to us from lenders including higher credit lines and lower interest rates. Several factors can harm your credit score and severely reduce your ability to obtain credit. Outlined below are some of the most common things that hurt your credit score.

Too Many Revolving Credit Accounts

If you have a good credit score it is moderately easy to be approved for a credit card. In some cases, a person opens several credit card accounts but instead of paying them off each month, they carry the balances over on one or more of their cards. Even if you are making regular payments to all of your creditors just having too many revolving accounts will lower your credit score.

High Balances On Revolving Credit Accounts

If you carry balances on multiple credit cards at or near their assigned credit limit, this will have a negative impact on your credit score.

Late Payments

We should keep in mind that it cannot be enough that payments should always be made on time if at all possible. Paying the payment on time always impacts your credit score they consider one of the major factors is determined by this calculation.

Habitual late payments will drastically lower your credit score and impact your ability to obtain new credit.

Skipping Payments

If you are having difficulty making ends meet it might be tempting to skip payments on some of your accounts. Resist this line of thinking because it will have severe consequences on your credit rating! If you are unable to make your payments, contact your creditors and try to work out a payment arrangement with them. If this is not possible, debt consolidation might be your best option. It is never in your best interest to ignore your debts and doing so will only compound the problem.

Accounts Charged Off

Repeated skipped payments indicate to your creditors that you do not intend to pay them so they will move your account to the bad debt ledger and begin the process of charging off your account. Once the customer account has been charged off, it will be sent to collections as a last attempt to collect the debt. This has a serious impact on your credit score

Accounts In Collections

Once your account reaches collections you have normally had several months to work out arrangements with the creditor. The fact that it has reached collections tells potential creditors that you are high risk and will make them reluctant to offer you credit.

If they do, you will most likely be charged a very high-interest rate. When an account is sent to collections its impact reflects on your credit score and is noted on your credit report, remaining there for several years.


Bankruptcy may seem like the only way if your debts are out of control. But it should be used only as the last option don’t let you down soon. Bankruptcy can lower your credit score by up to 250 points and remain on your credit report for up to 10 years.

If you are facing serious financial problems, debt consolidation is usually a better alternative than bankruptcy and will be considerably less damaging to your credit score.

Dedicated Financial Manager with over 12 years of quantifiable achievement. Working with Money Boat which well knows to help those who need emergency money.
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