Monday, February 02, 2009

7 Ways to Trash Your Credit Score

Making some of the following mistakes can ensure that lenders will need a hazmat suit to handle your credit report. By Sheyna Steiner � Bankrate.com

Remember the good old days, way back in 2006, when the streets were paved with credit-gold as far as the eye could see and credit cards rained from the sky? Even the credit-destitute were treated like kings by the credit card companies and courted with lavish offers of unlimited credit.
Here in the future, the world has changed. Banks claim they want to lend money, but really they'd prefer to buy other banks with government money.
Credit issuers aren't sure they want to lend money to people who need to borrow it, a situation somewhat analogous to the Groucho Marx axiom, "I don't want to belong to any club that will accept me as a member."
And woe betide those who ask for loans with glaring blemishes on their credit reports. An unpaid collection is apt to be regarded like a cockroach in the consomm�.
These days, wrecking your ability to get credit is about as easy as blowing over a house of credit cards.

7 ways to be credit-stupid:

1. Close credit card accounts

2. Let credit cards collect dust

3. Run up high balances

4. Apply for new credit repeatedly

5. Don't pay fines or noncredit-card bills

6. Ignore mistakes on your report

7. Make late payments or skip them

Note from Lucy: Now days our credit report is more important than ever when applying for a loan.... I know that it can also determine how high your interest rate will be if you do get accepted for a loan..... A so so credit report will not get you a bottom line interest rate.

Another thought: I have Diane and Jessica on my prayer list, and anyone else who are dealing with the aftermath of those terrible ice storms in Arkansas and Kentucky. As beautiful as they are, they are dangerous. Power lines are down, streets are slick, many people are without power, as well as heat. Let's hope for a quick recovery in that area of the country...

Have a great week everyone!

6 Comments:

At 8:41 AM, Blogger Big Dave T said...

Very good info. It seems that our insurance premiums are tied to our credit somehow as they send us our credit score along with our bill. I figure there must be a connection.

 
At 8:50 PM, Blogger Diane@Diane's Place said...

Thanks for your prayers, Lucy. Our power has been off all day again. Just came back on a few hours ago and has been flickering again so it could go off again anytime.

Almost all the ice is gone and the streets are dry but there are still a lot of people without power. Almost all schools are still out due to lack of power and in some cases, lack of water and sewer too. We're gonna be a long time recovering from this disaster.

Hope all is well with you and yours, my friend.

Love and hugs,

Diane

 
At 10:10 PM, Blogger Jim said...

Well I guess I'm not credit-stupid. Just sorta stupid.

We have a cousin (my first cousin) who may not get electricity for a week or two. Up there is worse than something like Hurrican Ike because they need heat. Of course some 'old people' here die because they don't have their air conditioning.
..
BTW, I am not a good driver but I am a skillful driver.
T.S. didn't look too good in that ditch either. Wonder how he got there. And then he blames it on those two young fellows.
..

 
At 7:14 PM, Blogger Jamie Dawn said...

My town in AR got hit hard, and I'm thankful I was in CA when this awful ice storm hit. So many people have suffered due to this.

Credit-stupid: That's a great word combo. It is easy to get into terrible debt using credit cards.

 
At 7:14 PM, Blogger Jamie Dawn said...

My town in AR got hit hard, and I'm thankful I was in CA when this awful ice storm hit. So many people have suffered due to this.

Credit-stupid: That's a great word combo. It is easy to get into terrible debt using credit cards.

 
At 3:45 AM, Blogger OldOldLady Of The Hills said...

One certainly has to be careful how you use your Credit Cards....!
It can be something some people abuse because they want the satisfaction of 'the moment', and are not thinking about the Piper Being Paid....Not a good way to use them, at all.

 

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