According to a news story published by CNN Money in 2013, a man could not find a company to hire him for over a year due to his low credit score. Brian Larsen had over 14 years of banking experience and multiple recommendations from his previous employers under his belt when he relocated to Surprise, Arizona. Regardless, he still couldn’t secure a job.
Brian never thought that a poor credit score could have such an impact on his career. His credit score had taken a hit after he had made four late mortgage payments and went through a short sale during the time of financial crisis.
There are a number of people like Brian who have little or no idea that a poor credit score can jeopardize their career or make their financial decisions go haywire. This is where Build My Scores can help. We have expertise in credit restoration to improve your credit score and help you achieve your financial goals. After restoring your credit score, we will also educate you about the factors that can bring down your credit score in future and how to avoid them.
Factors that Harm your Credit Score
Closing Unused Credit Card Accounts
About 30% of your FICO score and VantageScore depends on your debt utilization ratio. It has been estimated that people with a good credit score can keep their utilization under 30%. Closing out unused credit card accounts can increase your credit utilization ratio, which in turn will bring your credit score down.
Unpaid bills can make a credit score plunge dramatically. There are certain bills that people treat differently because they seem miniscule. Any kind of unpaid bill such as parking tickets, library fines, lapsed gym membership, or tanning salon memberships will have the same impact on your credit score as your home lease payment. There are chances that the delinquency will end up in collections and also reflect on your credit report.
If you think having no debt or credit cards will ensure a good credit score, then think again. You need to use an appropriate mix of credit in order to build a good credit score, whether credit cards, car loans, utility bills, etc. Consumers who refrain from using any credit products may end up with a lower credit rating.
Credit Repair Process
We, at Build My Score, use a multiple-phase credit audit process to remove inaccurate items from your credit report. The first step is to thoroughly research and investigate the information provided by credit and collection agencies.
We audit the credit bureaus and collection agencies using 400 different custom letters. Creditors and the credit bureaus are obligated to produce evidence within a reasonable period of time, which is generally 30 days. The credit bureaus are required to prove the information within this time limit. If they are unable to validate it, the items with discrepancies must be removed. We execute this process along with many others to ensure your credit is as healthy as possible!