AND HOW THEY CAN AFFECT YOUR CREDIT SCORE
Did you know that the higher your credit score, the more it is impacted when you make one of these 5 biggest credit mistakes? Sounds crazy, but you don’t have to take my word for it–though I wouldn’t advise trying it out for yourself.
1. MAXED OUT CREDIT CARDS cause your credit score to go down by anywhere from 10 to 45 points, depending on what your current credit score is.
For example, if your score is 680 and you have a maxed out card, it can impact your score between 10 to 30 points, but if your credit score is higher, say 780 then maxed out cards will impact you between 25-45 points.
2. LATE PAYMENTS negatively affect your score anywhere between 60 and 110 points, so pay your bills on time, and don’t let them go to a 30-day late status.
3. DEBT SETTLEMENTS drop your score from 45 to 125 points. While better than foreclosure, it is best to keep your debt manageable and make the payments.
4. FORECLOSURE affects your score between 85 and 160 points. Remember, you can sell your property rather than having foreclosure on your record.
5. BANKRUPTCY negatively affects your score and can drop it anywhere from 130 points to 240 points.
For a more detailed report on how to maximize your credit, read this advice from EXPERIAN.
