What Is A Good Credit Score

Don’t Let Your Credit Score Drop

Each * represents a milestone in your credit history due to an unpaid bill.

700 Credit Score *30 Days Past Due

  • Your next statement will reect a late fee and the financial institution may hike up your interest rate. They also have the right to report the delinquency to the credit bureaus. However, if you contact them and explain any unique circumstance, they may work with you and your credit may stay as is.

    650 Credit Score *60 Days Past Due

  • Tack on another late fee, possible rise in your interest rate and another report to the credit bureaus. Very rarely, even with a phone call and conversation, will your credit score not get dinged.

    600 Credit Score *90 Days Past Due

  • Ugh, even MORE late fees and possible interest rate hike. You may also begin to start getting those disheartening phone calls and letters from your nancial institution. You might also have your account or card cancelled. Oh, and to top it o, your credit score takes another hit.

    550 Credit Score *120+ Days Past Due

  • Now it’s getting serious. The collection department from your credit card company gets involved and tries to collect the past due and late fees. They may attempt to do this for up to 12 months before throwing their hand up and moving you to the next stage…oh, yeah, and that score keeps dropping like a rock.

    500 Credit Score *Charged Off Account

  • These are not the words you want to hear. The creditor gives up on you and passes your account to a full fledged collection agency. They are so tired of you, they will take just a few pennies on every dollar you owe, just to recoup SOMETHING. You thought the credit card companies calls were annoying…yup, another credit score hit.

    450 Credit Score *Collections Account

  • The scary, strongly worded letters and phone calls start. They will come more often and in much stronger language and legal jargon. This is detrimental to your credit score as any collection agency’s eorts show up on your history.

    400 Credit Score *Court Judgement

  • Just when you thought you ran from this and it’s all behind you, it’s possible the collection agency can take you to court and try to garnish your wages, or even put a lien against any property you own. Of course, any judgement will put that credit score to a point it will take years to repair.

    * Each instance of these mishaps do not go away very quickly. In fact they will stay on your credit history for seven years. It can also have an impact on your score from anywhere from two to seven years. Having a low or awed credit score can result in you paying higher interest on any loans, that is if you can even get one. It will also make it nearly impossible to obtain a vehicle, property and other credit cards in the future.

    If you do, you may find yourself paying in the upper teens or higher in interest rates. Of course, these scenarios are all just examples and not set in stone, so your score could drop more or less and the examples given above. Every situation is different.