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Credit Repair

10 Things That Lower Your Credit Score

As you are reviewing your credit report take notice of the “Account Status” for each entry. The “Account Status” is reported by the creditor of that account and can give you a good indicator as to how much this account positively or negatively affects your credit score.

If you find that one of these negative entries is listed on your credit report, it may be time to start repairing your credit!

Items That Lower Your Credit Score

Exact terminology might differ a little between reporting agencies:

  1. Included in Bankruptcy will be applied to accounts eligible to be included in your bankruptcy.
  2. Charge off is when a creditor writes off the unpaid debt as a loss (i.e., they no longer take it into consideration when reporting company profits or losses)
  3. Collection is usually past due 180 days and has been sold to a collection agency.
  4. Closed is an account that has either been closed by the creditor or you. This will hurt your credit score in almost all cases. Don’t close accounts (particularly credit cards) that are in good standing even if you don’t use them –it will hurt your credit.
  5. Delinquency will show 30, 60, or 90, which indicates the number of days the account was past due.
  6. Default means that you have failed to meet the obligations of the account, (usually a loan).
  7. Dispute will show when you have filed a dispute on that account and it is under investigation.
  8. Foreclosure gives the creditor the right to sell a defaulted property.
  9. Repossession means the creditor has taken back the item they sold to you.
  10. Settlement is an agreement between you and the creditor to settle the account for less than owed.

This list is nearly complete, but if you are aware of more negative account types, please shoot me an email and I’ll add them.


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