We all have things happen at one time or the other financial wise that would make us worry about our credit score being affected. While there are things that will cause a negative effect on your credit report, there are some fairly common incidents that won’t because you score to plummet in most cases.
Let’s take a look- they might surprise you:
- Loss of income and emptying your bank account won’t directly affect your credit unless you get behind in your bills. As long as your bills are paid on time, your credit stays good. Of course long term unemployment can affect your ability to qualify for new credit. Also receiving unemployment benefits or public assistance won’t affect it either.
- Withholding your rent due to a dispute with your landlord. This only shows up on your credit report if your landlord files suit and wins. However, most rental agencies ask for rental history references and many run credit histories, so be cautious in how you handle a dispute. Most of the time legal problems won’t affect your credit score as long as you pay any debts you’ve incurred.
- Late payment of taxes only affects your credit score if a lien is filed against you. This refers to local, state and federal taxes. If you are delayed in paying your federal income taxes and have to make payment arrangements with the IRS that is listed on your credit report as a loan.
- Unreported late payments to small vendors. Most small vendors don’t typically report to credit bureaus on uncollected debts. Only when a vendor sends your account to a collection agency does it go on your credit history.
- Anything a creditor agrees to not report. Sometimes if you negotiate with a creditor on unpaid debt and cooperate with them, they will honor your request to not have the matter reported. This is especially true if you are working to reduce your debt.
Most of the time if you have an outstanding balance or debt that you owe to any type of creditor, if you work with them to reduce that debt and honor whatever payment arrangement they have worked out with you, your credit history will not be severely affected. As long as your bills stay current and you don’t get behind your credit history will not be effective. Of course the best way to not have your credit history adversely affected is to keep your monthly bills paid as soon as possible.