You know your credit score is important. The closer your score is to 800 the better your chances of securing a loan for that beautiful Colorado Springs home. A high score also means better rates and terms for the loan. However, many people donâ€™t realize that certain negative actions can bring down your credit scoreâ€”and keep it there for seven years or more.Â
From RealtyTimes, here are seven things that can wreck your credit score and your subsequent eligibility for financing.
1.Â Â Frequent Late Payments (aka Deadbeat Behavior) â€“ Consistently making payments 30, 60, or 90 days late should be avoided. Know that paying even 30 days late can stay on your report for many years.
2.Â Â Collections â€“ If your lender contacts a collection agency to obtain your payment, itâ€™s reported to the credit bureaus and this negative information stays put on your report for seven years.
3.Â Â Charge Offs â€“ Another seven years of damage result if your lender charges off your debt because they know youâ€™re never going to pay.
4.Â Â Public Proceedings â€“ Examples include bankruptcy, tax liens, or other financial judgments assessed to you. Even if you pay them off, theyâ€™ll show for seven years on your report. Bankruptcies can hang on for ten years and you never get rid of an unpaid tax lien.
5.Â Â Settlements â€“ This means paying part of your debt in a settlement such as a mortgage short sale. Whether for mortgage, credit cards, or other debts, a settlement notice means (you guessed it) seven years of an undesirable credit score.
6.Â Â Foreclosures â€“ Whether your lender forecloses on your Pikes Peak home or you give it to the lender in a deed-in-lieu of foreclosure, itâ€™s another seven year stain on your report.
7.Â Â Vehicle Repossessions â€“ Not paying the car loan means the repo man takes the car and your credit score takes another nasty hit.
For those whoâ€™ve managed to avoid the things on this list, keep up the good work! If youâ€™ve made one or more of these errors, there is still hope for buying a home in Colorado. With a lot of patience and hard work, you can get your credit score back in line. And now you know what not to do to keep it there.
No matter what your financial situation, we can help find a home for your budget. When youâ€™re ready to buy or sell a home in the Pikeâ€™s Peak Area, call The Roshek Group! We are ready to help you with all of your real estate needs.