Paying off Debt is Not Enough to Maintain Your Credit Score

If you don’t owe any debt, always pay bills on time and never use your credit card. It doesn’t mean your credit score would be in good. There are many other minor things that have the potential to affect the score radically.

You don’t believe me? Get a movie CD on rent and don’t return it for a few days. And don’t blame me if you are declared as untrustworthy to receive a rented room just because of this incident.

Let’s have a look at some of the things that can really affect your credit-worthiness.

Defaulting on Rents

If you fail to pay your rent on time, your landlord can report the bureau that you have been evicted due to irregular payment of rent. This would show up on your report for quite a long time. Not every landlord, however, would take such a step. An individual or a family would report it. A property management company. However, wouldn’t think twice before reporting it to the bureau.

Non-Payment of Medical Bills

Though most of us are insured, many bills aren’t covered by insurance companies. And we don’t know the particulars of the new health care reform introduced by Obama. At times, it becomes difficult to manage funds to pay medical bills, which can lead to a huge trouble. Often these cases are handed over to collection agencies. And most collection agencies do things we dread about. Ultimately, this non-payment appears on your report.

Library Fines

Believe it or not, most libraries are now teamed up with collection agencies to recover unpaid fees or lost book dues. Not paying for lost library items or non-payment of fines add up instantly. Even after reporting it to the bureau, they will try to find sources to recover their loss. Most often, they seek help from collection agencies. Even if they are able to recover a dollar, they are happy. After all, they don’t have any other sources of income.

Non-payment of utilities and other monthly bills

As of now, very few cable companies and utility providers report late payments. However, they have started doing this recently and the trend is continuously increasing in some companies. Within some months, providers all over the country will start reporting it. They say they aren’t left with any options. People first pay the bills that affect their credit score and they aren’t left with any money to pay for utilities.

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