There are a surprising number of ways to damage your credit score. Most people know about how paying their bills late or going over their credit limit can damage their credit score, but many don’t know about all of the other random ways you can damage your credit score without thinking. Do enough damage to your credit score and you could find yourself denied a mortgage loan, a rental contract, or a promotion without ever missing a payment on any of your credit accounts. Here are some of the most surprising ways that people can damage their credit.
Furniture Financing
Many furniture companies offer shoppers the option of financing their purchase through the store for a period of time for a very low or 0% interest rate. Consumers regularly take advantage of these deals because it allows them to get the furniture that they want without having to relinquish large amounts of cash or put the purchase on a high interest credit card. Unfortunately, taking advantage of one of these deals may make you appear to be a higher credit risk to other creditors assessing your creditworthiness, as these loans are generally considered to be a loan of last resort and an indication that you buy things that you cannot afford. These financing programs are also entered as a maxed out loan in your credit score calculation.
Unpaid Library Fines
Did you forget to return a book to a library before you moved out of town? If so, the unpaid library fine could be damaging your credit score. After a certain period of time, unpaid library fines may be turned over to a collections agency for recovery of the funds. These collections agencies mark the account as a collections account in your credit history, immediately reducing your credit score by a significant amount. If there is a chance that you have an unpaid library fine or any other municipal fine, make sure that you pay it as soon as possible to prevent more damage from occurring to your credit score.
Ordering Cable Or Satellite TV
One of the strangest ways to damage your credit score is by ordering cable or satellite TV from your local provider. When you order services from one of these companies, they will run a hard inquiry on your credit report to determine whether you can be counted on to pay your bill on time every month. This hard inquiry causes a decrease in your credit score and many inquiries can damage your credit score by a significant amount. Give permission to run a credit check on you sparingly and only to companies that you are truly interested in doing business with.