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Small Blips Can Have Big Impact On Your Credit Score

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Frank Bruno

Stop Hurting Your Credit Score with Delinquencies On Your Credit Report

Some people do not realize that they are hurting their credit scores with delinquencies. Unlike late payments, these delinquencies are entries on your credit record that shows payment delays for more than 30 days. You will be surprised that these delinquencies will remain on your credit history for as long as seven years. Even if you pay them off, you will have to endure years of inconvenience, with creditors considering you as high-risk borrowers. You will only be approved for subprime loans that have higher interest rates.

Just like other negative credit activities, delinquencies are avoidable. All you have to do is make sure that all your bills are paid on time. You should also review your credit history at least once a month to check for errors. Wrong delinquency claims could ruin your credit score and you should dispute these claims as quick as possible by reporting them to the credit bureau. You should specifically request the removal of such entries at once before it could affect your over all credit score.

You could also avoid any more delinquencies by learning how to manage your finances better. Always be conscious of your due dates. you will not only avoid delinquency records but you will also save a considerable amount of money in late payment charges and penalties. If you manage to keep track of your finances effectively, you will never have to suffer from inconveniences such as denied applications, low credit limits and high interest rates.

Non-payment of these delinquencies will make matters worse. After 180 days, your creditors will have to write the debt off as uncollected and consider it a loss. The debt will be entered on your account as a charge-off and it will lose you more points off your credit score. If you still ignore these charge-offs, they could become collection accounts. You would not want to be pestered by collection agents all the time. Both charge-offs and collection accounts also stay on your credit report for seven years from the date of the original delinquencies.

Since these delinquencies will be there for some time, you should try to compensate by making sure that your succeeding credit reports will not show anymore delinquencies. The negative effects of these delinquencies usually fade after some time and if creditors observe how good you have been in paying your debts since then, they might overlook them.

In addition to paying your bills on time, you should also make sure that all your credit card balances are relatively low. Credit scores are usually calculated based on the amount you owe in proportion to your overall available credit. You must also refrain from applying for credit since they would show up on your credit report as credit inquiries. These inquiries might cost your points and if your application was not approved, it would really hurt your credit score.

You should always remember that delinquencies are avoidable and manageable. Make it your goal to maintain a clean credit history and repair it if necessary.

Credit Expert Frank Bruno has assisted nearly Two Thousand Consumers To Quickly and Dramatically Improve their Credit Report and Credit Scores.
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