1. Foreclosure. A foreclosure means that for one reason or another, you
have not been able to meet your obligation on your biggest credit line.
Foreclosures present big red flags to creditors. If your credit score is already
bad you can lose 85-105 points or more on your score, if your credit score is
good, well, you can lose 140-160 or more points on your credit score.
2. Late Payments. Paying your bills and how you pay them, represents 35% of
your credit score! Paying your bills on time is one of the best things you can
do to improve your credit scores. Paying your bills late can inflict significant
damage to your credit reports. If your credit score is already bad you can
lose 30-60 points or more, for a late payment, if your credit score is good,
you can lose 90-110 points or more. This really illustrates the importance of
timely payments.
3. Maxed out Credit Cards. To the credit bureaus and lenders, it looks like you
may have dug an expensive hole that you may not be able to get out of. You
have become a risk for default in their eyes and it definitely damages your
credit score. If your credit score is already bad you can lose 10-30 points for
a late payment, if your credit score is good, you can lose 25-45 points. This
really illustrates the importance of timely payments.
4. Bankruptcy. You have accumulated debt and are unable to manage it. That
is what a lender and thinks when they see a bankruptcy. Now they may be
necessary but they are horrible for anyone’s credit report and score. They
will remain on your credit for 10 years, a reminder of your past financial
problems for credit issuers to see. If your credit score is already bad you can
lose 85-105 points or more for a bankruptcy, if your credit score is good, you
can lose 140-160 or more points.
5. Collections. This is a creditors last change to try to get what you owe them.
Now they have contacted a collection agency to try to get a percentage of
what you owe them. Collections are very bad for your credit report and
score. One collection can lower your score by 100 points.