In my one of my previous blog posts, I’ve discussed the factors that don’t influence your credit score. I hope you’ve been benefitted. But, do you know that your actions can also damage your credit score? Yes? You got me right! The actions below can take its toll on your credit score.
Here is a list of 4 unique actions that actually hurt your credit score:
1. Ignoring the library fines
It is silly if you think that paying a library fine of $5 may harm your finances. However, ignoring the library fine can cost you even more. Do you know some libraries have been sending unpaid fines to the collection agencies? And once it reaches the collection agency, it pops up on your credit report. Above that, the collection agency would quickly add its fees to the fine, pouring salt on a wound. Your library fine could easily balloon into $20 or $30 cost after adding the fees of the collection agency while bringing down your credit score.
2. Purchasing a new cell phone
It is good that you are buying a new cell phone. When you sign up for a contact, cell phone providers check your credit. Generally, they run soft inquiries, which don’t damage your credit score. If they perform a hard credit check it seems that you’re applying for credit. And you know very well that hard inquiries may pull your credit score down.
3. Having unpaid parking tickets
Some jurisdiction report unpaid parking tickets to collection agencies. Do you know your credit score gets hurt if you ignore traffic tickets and other violations? The longer you ignore your parking tickets, more will be the penalties added by the city and state governments. They can also report these to the credit bureaus as debts. Even if you migrate to another state, the credit bureaus would reach you as they know your identity well. It’s because once a ticket is penned down, your license plate is recorded and it is run.
4. Cancelling gym membership inappropriately
Are you the one who pays the monthly fees using an automatic withdrawal or with a credit card? Though it unifies the process, it can also create complications for you eventually. Gyms have proper cancellation procedures including paperworks.
You can face problems if you contact the credit card or bank and ask them to stop the automatic payments to the gym. If you’re not filling out proper paperwork to cancel the gym membership, then it would get reported to the credit bureaus as unpaid. Moreover, your account could be reported to the collection agency. And you know once it happens, it would damage your credit score.
Even if you don’t have automatic payment arrangement and choose to cancel the gym membership improperly, some gyms may take action against you. So, follow proper cancellation procedures to save your credit score from getting hurt.
Do you know any other unique actions that hurt your credit score? If yes, then leave a comment below.