The Causes Of Bad Credit
There are many causes of bad credit, ranging from a complete financial disaster to
missing a payment on a credit card and being hit with a late payment.
Each has a
different effect on the credit score.
In some situations it begins...
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The Causes Of Bad Credit
There are many causes of bad credit, ranging from a complete financial disaster to
missing a payment on a credit card and being hit with a late payment.
Each has a
different effect on the credit score.
In some situations it begins to snowball and ends
with a completely destroyed credit report.
The most common cause of bad credit is
missed payments.
Credit cards, installment loans, car payments, mortgage
payments, etc.
Sometimes it isn’t because of a lack of funds, but just poor time
management.
With current technology most companies now offer payment options
online or via the phone.
There really isn’t a reason to miss a payment these days if
the money is available.
Sometimes a financial hardship occurs that is beyond one’s
control and a payment has to be skipped.
In this situation the credit score is going to
take a hit, and it could drop anywhere from 50 to 120 points.
The best thing to do is
to maintain a perfect payment history from that point on.
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