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Credit Score: 5 Things You Might Not Realize Play A Role

Credit Score: 5 Things You Might Not Realize Play A Role

March 9th, 2017 | mortgage, loans, new home, annapolis, lenders, brokers, real estate, credit, refinance, buy new

1. Library Fines

While holding onto your rented library book for a few extra weeks might not have seemed like a big deal at the time, it could have come with a cost. And if you opted to ignore that late fee, you may be hurting your credit score. Libraries can send overdue fines to collections, which can be reported on your credit score.

2. Parking Tickets

Like other fines, cities are more frequently turning unpaid parking tickets over to collection agencies, and that can have a huge impact on your credit score. Next time you get a ticket for parking a little too long outside of the doctors office, make sure you pay it within the allotted time! 

3. Getting Cable

When you move to a new place and want to sign up for cable, the company may run a hard inquiry on your credit. Hard inquiries are made when you’re actively seeking credit, whether it’s for a student loan or a mortgage. Sometimes this can extend to even something like cable, as it is a way for the cable company to see if you’re truly able to take on a new financial obligation. 

4. Renting A Car

Some car rental companies will do a hard inquiry on your credit if you’re renting with your debit card, and that could hurt your credit score. It’s also important to make sure you pay all of your fees and fines — whether from accident damage, returning the car without enough gas, or extra fees that weren’t covered by your insurance company (if they’re covering your rental) — so the outstanding balance doesn’t land your account in collections.

5. Your Gym Membership

From automatic payments that get declined when your credit card information changes (like if you have to close an account that’s been hacked) to cancelled contracts that wind up in collections, your gym membership could be hurting your credit scores. Be sure to pay attention to the conditions in your contract concerning late payments, fees for cancellation, or what happens when you put your membership on hold. There are things they won't tell you, and it's important to dig a little deeper for yourself, to make sure it's not hurting your credit!

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