We all slip up sometimes, so don’t worry if you’ve done any of the following. Nobody’s perfect! A low credit score isn’t the end of the world. You can always work out a plan to bring your credit score back up; it’s never too late! So, for now, let’s take a look at some things you didn’t know could affect your credit negatively.
1) Unpaid Parking Tickets
You know that time you were running late for an interview and parked in the lot without getting a parking pass to display on your dash? Well, that unpaid $40 ticket you got is now the reason that banks might not completely trust you to give you a loan.
2) Cancelling Gym Membership Incorrectly
Most people have their monthly membership payments automatically withdrawn from their credit card. However, what many gyms don’t tell you is that you have to sign something in order to cancel your membership. So, if you decide to discontinue authorizing these payments through the bank, the gym just might report you to the credit bureau.
3) Cancelling Your Paid Off Credit Card
While this may seem like a good move that shows that you paid off your credit card debt, it actually can work against you. Cancelling your credit card if you have had a positive payment history with that account could have a negative impact. Removal of the account shortens your good credit history, which you may not want to do.
4) Cosigning Credit Applications
Co-signing a loan is a touchy subject for many, because of the sensitive nature of the situation. Let’s say your nephew, Adam, is in a real bind for a student loan and you are the only one who he can ask to co-sign this loan. Firstly, you need to ask yourself if Adam is a truly responsible individual who will dutifully pay off the loan. You also need to realize that co-signing for the loan means you are letting Adam borrow your good credit standing. Therefore, his debt is your debt; and if he misses a payment, it’s like you’re missing a payment. So, make sure you co-sign for someone who is undoubtedly trustworthy, or you might find yourself paying back money that’s not even yours.
5) Library Fines
Remember that Twilight novel that has been sitting on your shelf for the past year, that you keep forgetting to return to the library? Well, it’s coming back to haunt you. It is possible that your guilty pleasure of vampire romance novels might be one of the causes of your low credit score. Libraries will most likely not report a low fine, but be warned if your fine makes its way to the $50 threshold.
If you have any questions regarding your credit, or any related inquiries, don’t hesitate to contact our friendly team here at Mortgage Winners.
We wish all of our readers a February full of happiness and good credit!