Rapid Recovery Solution, Collection Services Leader, Discusses 10 Ways People are Sabotaging Their Credit
Following an article about how credit scores can lower, even when you think you’ve done everything right, Rapid Recovery Solution releases a statement.
Bohemia, NY (PRWEB) April 03, 2013
On April 3, 2013, Rapid Recovery Solution releases a statement in response to different reported ways that consumers sabotage their credit, even though they think they’re taking all the appropriate steps to secure their credit score.
According to the MSN Money article, a credit score will tell a lender how big of a risk it is to lend you something. However, a credit score can be much more complex than that, which is why some seemingly sound credit moves don’t exactly lead to a better credit score.
The article mentions 10 different credit-moves that may seem like a good idea, but can end up lowering your credit score:
If you pay off your last credit card balance, and are finally debt-free, you can still see a drop in your credit score. Credit scores rely heavily on recent data. To continue to receive a credit score, you need to have at least one piece of recently reported information, such as a credit card payment.
- A young person who chooses to make their own way by working after school and putting money in the bank can have a lower credit score than their peers who sign on to one of their parents’ credit cards. When you sign onto someone else’s credit card, you take the history of that card with you, which can increase your credit score.
- Making a big purchase and pushing your credit card to the limit can make your credit score drop.
- Parents can find themselves sinking deeper in bad credit when they start paying for their kids’ college expenses.
- If you’re the victim of identity theft, and you decide to close all your credit cards, your high balance that was on one credit card can now compromise a high percent of your available credit, which will lower your overall score.
- Bankruptcy falling off your credit score can also lower it as a result of the “scorecard” system which makes up the credit scoring formula.
- If you open a department store card to save 10% or some other deal, your credit score can take a hit. The “highly utilized” new card may have seemed like a good idea, but instead it can impact your credit score negatively.
- You pay a debt collection agency right before your old debt was about to be rendered unenforceable. Now the debt is reopened, and your credit score has taken a hit.
- If you run into a credit dispute, make sure it gets taken up on all three credit bureaus. Failing to do so can impact your credit later on.
*If you finally pay off debt, there’s good news and bad news. The good news is you finally paid off your debt, the bad news is your credit score won’t budge, regardless of how much the debt was for.
John Monderine, CEO of the New York-based collection services experts, Rapid Recovery Solution, comments on the MSN Money article: “These 10 ways people are sabotaging their credit are huge. We see this all the time. Someone thinks they’re doing the right thing, but in fact they're unwittingly tanking their credit scores. It goes to show that people need to be extra cautious when handling matters that involve their credit, so they can avoid negatively affecting their credit scores or ending up in debt.”
Founded in 2006, Rapid Recovery Solution, Inc. is headquartered at the highest point of beautiful Long Island. Rapid Recovery Collection Agency is committed to recovering your funds. We believe that every debtor has the ability to pay if motivated correctly. We do not alienate the debtors; we attempt to align with them and offer a number of ways to resolve not only your debt but also all their debts.