What Things Hurt Your Credit Score the Most?

Updated: Apr 25



Your credit score is one of the most important numbers in your life. It can dictate your ability to get a loan, a mortgage, or even a job.


That's why it's so important to make sure that you protect your credit score at all costs. What are some of the things that can hurt it? In this blog post, we will discuss the biggest factors that can damage your credit score.


Biggest Factors That Affect Your Credit

Some of the biggest factors that affect your credit score are:

1) Your Payment History:

This is the most important factor in your credit score. It accounts for 35% of your total score. That's why it's so important to always make your payments on time. Lenders want to see that you're a responsible borrower, and late payments will damage your score.


If you have any delinquent accounts, it's important to get them paid off as soon as possible. The longer they stay on your report, the more damage they'll do to your score.


2) Your Credit Utilization:

This is the second most important factor in your credit score. It accounts for 30% of your total score. Your credit utilization is the amount of debt that you have compared to your available credit.


For example, let's say that you have a credit card with a $1000 limit. If you have a balance of $500 on that card, then your credit utilization would be 50%.


Ideally, you want to keep your credit utilization below 30%. This demonstrates to lenders that you're a responsible borrower and that you haven't used up all of your credit.


If you have a high credit utilization, you can try to get a higher credit limit. This will lower your utilization and improve your score.


3) Amounts Owed

This factor accounts for 15% of your credit score. It includes both the amount of debt that you have and the number of accounts that you have with a balance.


If you have a lot of debt, it's important to try to pay it down as quickly as possible. You can also try to consolidate your debts into one account. This will make it easier to keep track of and will lower your credit utilization.


If you have a lot of accounts with balances, it's important to try to pay them off as quickly as possible. This will lower your debt-to-income ratio and improve your score.


4) Bankruptcy

This is the most damaging factor on your credit report. It can stay on your report for up to ten years and will damage your score significantly.


If you have filed for bankruptcy, it's important to try to rebuild your credit as quickly as possible. You can do this by getting a secured credit card and making all of your payments on time.


5) Repossession

The act of repossession can stay on your credit report for up to seven years. If you're facing repossession, try to work out a deal with your creditor before they resort to this measure. You might be able to get caught up on your payments or negotiate a pay-off arrangement.


If you can't avoid repossession, make sure to keep up with your payments after the fact. This will help improve your credit score over time.


6) Charge offs

A charge off is when a creditor writes off an account as uncollectible. This notation will stay on your credit report for up to seven years.


If you have a charge off on your credit report, try to negotiate a payment plan with the creditor. Once you've made arrangements and started making payments, make sure to keep them up. This will help improve your credit score over time.


Bottom Line:

If you're facing any of the above issues, don't despair. There are things you can do to improve your credit score over time. Stay current on all of your payments, including utility bills, credit card bills, and mortgage or rent payments. If you have any collection accounts, try to negotiate a payment plan. And lastly, keep an eye on your credit report so you can see where you need to focus your efforts.


If you're looking for more tips on how to improve your credit score, check out our other blog posts. Thanks for reading!


Denise H. Davis

Credit Repair Specialist

Serving All Of North Carolina
















11 views0 comments