3 Factors That Can Destroy Your Credit

As mentioned in some of our other blog posts, there are a number of strategies you can employ to achieve a high credit score. This score has an effect on many processes important to consumers, from getting approved for a credit card to getting a good rate on a mortgage.

However, life tends to be unpredictable, and the reality is that sometimes we stumble on our trip to that perfect score. Often, knowledge is the greatest form of preparation — by being aware of the factors which can cause a credit score to drop, you can be proactive in avoiding or recovering from these pitfalls. And remember: with bad credit financing via flexible lease-purchase options at Okinus, a less-than-stellar credit score doesn’t have to stop you from getting the furniture, appliances, and electronics you need.

  1. Involvement of debt collectors
    We all try to make payments on debts in the amount of time we are given. Sometimes, unfortunately, we forget about a debt, or are not able to allocate the needed funds in time. When this happens, debt collectors often get involved. When a collection agency is hired or purchases your delinquent debt, they report that the debt is in collection. When this happens, your score drops; the precise amount of damage to your score depends on your initial credit score. A higher score will fall more dramatically, while a lower score will be less affected.
  2. Failure to make credit card payments on time
    Nothing can sink a credit score like late payments. When credit card debt builds up, it can get more and more difficult to make payments on time. This is a common problem — a whopping 157 million Americans have some amount of credit card debt. These late payments are weighted very heavily in a credit score; 35% of your credit score is based on credit history alone. Thus, paying your monthly credit card bill on time is essential for rebuilding credit.
  3. Unpaid court judgments
    If you receive a court judgment, it is essential to pay it as soon as possible. An unpaid judgment has consequences beyond the judicial system — judgments get checked by creditors as well, as they are another form of debt.

If you need to finance some large purchases of household items, but you have a credit score that is lower than you would like, don’t worry. With the flexible lease-purchase bad credit financing options available at Okinus, you can buy the appliances you need regardless of your credit score. Try out the furniture financing calculator today — you will be impressed by the rates available with bad credit financing.

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