Indiana Credit Card- Actions That Can Harm Your Credit Score

By: EconomyWatch Content Team   Date: 28 January 2010

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Your credit score is a number that is used by all prospective lenders and creditors to determine if you are a good credit risk or not. When you apply for an Indiana credit card someone will be taking the time to find out from the credit bureau what your credit score is. Here we look at some actions that can do harm to your credit score and are better off being avoided!

Making your credit card payments late is not a good thing to do. This is especially the case if you do it on a consistent basis. This is also particularly bad if you allow the late payments to go over 30 days. All of this information goes directly to your credit file. Many people are not aware of the fact that 35 percent of their credit score is their history of making payments. In order to keep your credit score as positive as possible, pay your bills on time.

Not making payments on your Indiana credit card is even worse than a late payment. This makes you look totally irresponsible. It gets even worse if you miss payments month after month. If you are experiencing financial difficulties than call up the credit card company and explain the situation to them. Do your best to find a solution to the problem instead of just ignoring it. Your need to make payments will not just go away! Every month that you miss making a payment on your credit card you come closer to having the account charged off.

If you have not been making regular payments or have stopped paying your Indiana credit card all together then there comes a point where the creditor will decide that you have no intention of paying off the remaining balance. This is when they charge off your credit card account. This kind of status for an account is a very bad one and will do nothing but harm to your credit score.

If your credit card account has been sent to collections this will spell bad news for your credit score. Creditors will sometimes use a third-party debt collector in order to prompt you to pay off your card. Some creditors will send your account to a collection agency before they charge it off while others will charge it off first and then do so. If your account is showing that it is in your collections on your credit report this means that the creditor has suffered many failed attempts to make you pay and as such has given up trying in favor of hiring someone else to do it for them.


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