Your credit score is likely something you hold dear to your heart, as you should. It can expose you to exclusive opportunities while simultaneously restricting you to limited, unfavorable options. With services like Credit Karma and myFICO, individuals can get an idea of their credit scores and take the necessary action to improve them. One of the most vital aspects of maintaining or improving your credit score is being aware of what can damage it.
While most people know that instances like hard inquiries and filing for bankruptcy can lower their credit score, there are a few unfavorable actions that may be less apparent. Be sure to steer clear of these five things you didn’t know could hurt your credit score.
Florida is one of the many states replacing toll booths with electronic readers for prepaid transponders. Probably most prevalent in South Florida cities Fort Lauderdale and Miami, drivers must have a SunPass to pay tolls; otherwise, a camera snaps a picture of their license plate and sends a bill to their house. Those who fail to make a timely payment on such bills can risk having their debt sent to collections.
Libraries are no exception. When you check out something from a library, whether that be a book, DVD, tablet, or anything else and don’t return it, a charge is added to your account. The library is unlikely to report your delinquency to the three major credit bureaus, but they will send or sell your unpaid balance to a collection company that can then report it, causing your credit score to plummet.
As abstract as it may seem to some, not having credit or a loan can hurt your credit score. Your credit utilization rate is what helps determine your credit score. If you have no credit to use or loans to make payments on, the credit bureaus are unable to accurately gauge your trustworthiness which will likely result in a low credit score.
As exciting as storage auctions may look on TV, there is an entire story happening in the background that’s less glamorous. Storage auctions occur after you fail to make the scheduled payments for the rental space. The storage facility is not required to use the funds from the auction to pay off your balance. They can turn over your balance to a collection agency who, you guessed it, may report your delinquency.
Closing a credit account can cause your credit utilization rate to go up, but that isn’t the concern here. People often close credit accounts unaware of recurring charges or outstanding balances they must fulfill. You may think it’s closed while fees are actually accumulating over months, even years, to the point where debt collectors are harassing you for payment.
Your actions may have led to a damaged credit score and defaulted account, but that does not give debt collectors the freedom to infringe on your consumer rights. The Florida FDCPA and TCPA attorneys at The Law Offices of Jibrael S. Hindi can help you secure up to $1000 per FDCPA violation and $500-$1500 per TCPA violation. Contact us today for a free case evaluation and discover how you can get debt collectors to pay you!