Feb 21, 2013 Walt Wojciechowski
Countless common transactions and financial blunders can wreak havoc for years on an individual's credit. These actions can make it difficult to qualify for loans, new lines of credit and other financial benefits for years to come.
Consumer credit bureaus should consider educating their patrons on the most common flubs that can tank a person's credit score. For example, according to Yahoo, simply missing a few payments or not taking advantage of credit opportunities can result in dismal scores. The source highlighted that not reading the fine print on student loan agreements can result in unintended defaults that can decrease a score by more than 100 points.
The news provider also explained that going off the grid and not showing a steady use of credit can reduce a score greatly, and failing to pay off credit cards in favor of other bills is also a detrimental practice.
However, when a financial blunder results in a poor credit score, rather than waiting years to pursue credit opportunities, consumers can look into a Payment Reporting Builds Credit score. This option can be built by allowing credit bureaus to access utilities accounts and create a positive score using a strong payment history as evidence.