5 Biggest Credit Mistakes People Make

5 of the Biggest Credit Mistakes People Make

Maxed out cards cause your credit score to go down by anywhere from 10 to 45 points depending on what your current credit score is. Hi this is Stephanie Souza-Breault and we are going to cover what NOT to do when trying to build your credit. Did you know that the higher your credit score, the more it is impacted when you make one of these mistakes? Take a look here at this graph, you can see that the higher your credit score for each of these credit mistakes, more adversely affects your credit when you make one of them. 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.

This is the crazy, a 30- Late Payment negatively affects your score anywhere between 60 and 110 points, so pay your bills on time, don’t let them go to a 30 day late.

A Debt Settlement drops your score from 45 to 125 points, wow, that’s insane! A foreclosure affects your score between 85 and 160 points and lastly a bankruptcy negatively affects your score and can drop it anywhere from 130 points to 240 points.