5 Things You Didn’t Know Could Hurt Your Credit Score

credit score
Monitoring, improving and maintaining your credit score are all extremely important. Your credit score can prevent you from buying a home or even getting a job. That being said, it is equally as important to know what can hurt your credit score.

Just because you don’t have much debt or you pay your bills on time doesn’t mean you aren’t hurting your credit score in other ways. In fact, there are various ways to mess up your credit that many people don’t realize.

5 Things You Didn’t Know Could Hurt Your Credit Score

If you’ve been working on your credit score you are probably more than familiar enough for the various ways you can improve it. Did you know that some things that may seem like they’d help your score may actually hurt you? Things like cancelling credit cards and missing a payment can all affect your score negatively. Here are a few things you probably didn’t know can (and will) hurt your credit score….

  1. Overdue library books. You wouldn’t think your overdue library books would be impacting your credit score but they do. Many public libraries have partnered with collection agencies to get their money back for the books that are not returned or fees that have gone unpaid. Of course, your fee would have to be pretty substantial but it is a possibility.
  2. Cancelling accounts. What happens to your credit score if you cancel your credit card? Well, your credit score can go down significantly. Closing a credit card account will negatively impact your credit within a month or so of closing the account. Even if your closing balance was $0 cancelling the account will bring your score down.
  3. Unpaid medical bills. Even your medical bills are impacting your credit score. If you’ve left any medical bill unpaid (even the short Urgent Care visits) they will appear on your credit score and they’ll be sent to collections if they go unpaid long enough. Once it is placed for collections your state decides how long it will remain on your credit (some states have up to eight years).
  4. Applying for too much credit. Trying to improve your credit can be difficult but applying for too much credit at one time will negatively impact your credit score. Don’t apply for more than one credit card at a time and wait a few months in between applications. Similarly, don’t ask for too many credit increases as that will bring your credit score down as well.
  5. A new cell phone contract. Opening a new cell phone contract can bring your credit score down a little as well. Although your cell phone company doesn’t report monthly payments, per se, it does run your credit before approving you for a cell phone plan. Running your credit (like applying for credit) can cause a decrease in your credit score.

Although there are many ways to hurt your score, there are just as many to improve it. Don’t procrastinate! Start improving your credit score today.

Photo: Cafe Credit

Save More Money in 2018

Coins 1523383 1920

Subscribe and join the worldwide 52-week money challenge! Get the tools you need right to your inbox.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

Share this post:

Recent Posts

Leave a Comment


What’s the Best Free Recipe App?

The Apple Store and Google Play together offer more digital cookbooks than you probably have room for on your mobile device. So which... more →
New tax law might slow down housing market.

What Will the New Tax Law Do to the Housing Market?

The new tax law will have a profound impact on the housing market, although in ways that go beyond the deductibility of mortgage interest... more →

4 in 5 Households Will Get a Tax Cut in 2018

Four out of five U.S. households will get a tax cut as a result of the legislation that President Donald Trump signed into law today. more →
Will bitcoin reach $100,000?

When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch... more →
The Dow Jones topped 24,000 -- now what?

The Dow Jones Crossed the 24,000 Threshold. Now What?

Stocks appear to be increasing in volatility, yet the markets closed on Monday, December 4 with the Dow Jones Industrial Average is... more →
Peer mortgage

Should You Get a Peer-to-Peer Mortgage?

If you can’t get approved for a home loan from a bank, you might want to look into applying for a peer-to-peer mortgage. more →
Investment gifting is awesome.

4 Things To Know Before You Donate an Investment

While donations of any kind are appreciated, gifting investments benefits both the giver and the receiver. Here are four key things... more →
Are you wondering: What's the Relationship Between the Stock Market and Federal Debt?

What’s the Relationship Between the Stock Market and Federal Debt?

Wouldn’t it be wonderful if gains in the stock market could actually reduce U.S. government indebtedness? If that were true,... more →

How Long Can You Go Over Your Oil Change?

One the long list of things that can go wrong with your car, changing your oil after the recommended period can fall to the bottom.... more →