Upon checking your credit report, a creditor can approve or disapprove your application based upon your score. If you have a low score, you may find that it’s more difficult to get approved or to get a good deal.

Indeed, consumers need to keep their personal credit in good shape. More importantly, you need to be aware of the thing which can hurt your personal credit.

1. Late Payment Submission

The FICO score is made up of 35% payment history. That means even occasional late payments can have a huge effect in your credit rating. If you have bills to pay, don’t wait until your due date arrives before making payment. To be safe, pay your bills as early as you can.

2. Neglecting Debt

If you don’t have money to pay your debts, the worst thing you can do is ignore your creditors. Get in touch with your creditor and explain your situation. Request if your due date can be extended or try to negotiate for a new arrangement. Most creditors would be glad to help out a borrower in a crisis. The most important thing is to show your creditors that you are doing your best to keep up with your obligations and to avoid defaulting from your payments.

3. Charge-offs

Past due debts can be charged-off. That means your credit has given up collecting payment after a long period of delinquency. Of course, such a remark puts you in a bad light as it sends the message to other creditors that you have not taken responsibility over your debts.

4. Debts Passed on to A Debt Collection Agency

Before or after charging off your debts, a creditor may pass on the collection of payments to a debt collection agency. This will also be indicated in your credit report. As with charge-offs, debts passed on to debt collection can send out a negative impression to future creditors.

[Article: Is It Risky to Take Out a Debt Consolidation Loan?]

5. Foreclosure

If you have defaulted from your mortgage loan payments, then your property may have been foreclosed by your lender. A record of foreclosure can remain in your credit report for up to seven years and is also derogatory.

[Article: Ways to Avoid Foreclosure Scams]

6. Bankruptcy

If you have filed for bankruptcy, then it will also be reflected in your credit report. Having such a record can badly damage your personal credit score and you need to exert extra effort and wait for at least two years to see an improvement in your rating. This is why borrowers are advised to consider bankruptcy only as a last resort in resolving debt problem.

[Article: Possible Reasons Why People File for Bankruptcy]

About the Author

Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. NHBS also has a list of recommended Credit Reports Online

Information in these articles is brought to you by www.newhorizon.org. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

About Melanie Mathis

Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. Connect with Melanie Mathis on Google+