Avoiding these four things will save you big time.


A bounced check is one of those reports that will never show up on the traditional credit report. This however, does not make its potential implications on your credit score any insignificant. While your bank may not list your bounced check case with the credit bureau, you might still find the record listed due to a bounced check that was taken up by a collection agency, civil or criminal charges against you owing to it or writing it to a company which reports to the credit bureau.

The bank may also list you on their ChexSystem meaning your ability to open a checking account with another bank is  limited for some years duration and your credit limit is reduced.


Anytime you apply for a credit card or a loan, the lender performs an analysis called the ‘Hard Credit’ inquiry. The ‘Hard Credit’ inquiry seeks to review your credit score profile. It will determine your FICO credit score to a tune of 10% and the score sticks to your credit report for  two years.

Frequent application of new credit cards also insinuates you are a financial risk to the lender. Statistical analysis proves that having numerous new credit cards in a short time span is a bad indicator of an individual’s financial responsibility. Hence, it causes a drop on their FICO score.

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Delayed payments are characteristic in high risk debtors due to unreliability. With your payment history accounting for 35% of your credit rating, you run the risk of having your bank sell you out to the collection agencies or notify your late payment to the credit bureaus. Both of these have a negative effect on your credit rating especially if the delay exceeds 30 days. This period will however vary from one institution to the other.

A singe late payment may soil your previously good credit rating. Considering the severity of the delay, its frequency, and current credit score and how recent it occurred. This might be avoided where you reach out to your lender for a compromise in payment method in cases where some personal issue has arisen making your prior arrangement hard to comply with.



Before endorsing friends and family for a loan, you may need to consider its effect on your credit rating. Co-signing for a credit with a high balance could affect your utilization ratio,  causing a drop in your credit score.

As a guarantor, you take up the responsibility of ensuring full settlement of the loan by the borrower in accordance to the stated terms. A default or inconsistent loan servicing by the borrower lowers your credit score.

The benefits of a good credit rating can never be downplayed. Avoiding the above list maybe just what you need to do to get your credit rating back on track.

This article by John McConnell first appeared on Pyramid Credit Repair and was distributed by the Personal Finance Syndication Network.



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Article last modified on December 28, 2017. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Common Mistakes That Can Destroy Your Credit Score - AMP.