Things you don’t want in your credit history
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Building Credit History » Things you don’t want in your credit history

Things you don’t want in your credit history


Updated: December 26, 2012

By
Add to Favorites:

Credit history is very important for every citizen. Whether you want a new credit card, a personal loan or a vehicle loan, the first thing that you should possess is a decent credit history. Even more importantly credit history cannot be built overnight. It takes years to build a good credit history and have a high credit rating which is why even students are advised to use student credit cards to start building some credit. Since credit history includes all the records of a person, including payments made, past expenditure patterns, loans etc. one must be really careful and ensure that it is clean at all times. Here are a few things which should be kept out of your credit history at all points of time.

Missing monthly payment of bills

Whether it is your cell phone bills, electricity bills or credit card bills, it is advisable to be consistent in paying those bills absolutely on time. Every time you miss one of the bill payments not only do you have to pay the late fines, your credit history also takes a severe hit. The more the number of missed bill payments the worse it is for your credit history and even worse for your credit score which will go down This is because if you don't pay your debt, in the form of bills, on time, your creditworthiness starts to come under a doubt. Hence it is good to give first priority to the monthly bill payments before you use your income for other needs.

Bankruptcy

This is one thing that can spell disaster for your credit history. There are some people who often choose this path to get rid of most of their debts, especially when they are under a mountain of outstanding dues and stranded without the means to pay them off. However, bankruptcy is one thing that is hard to get rid off from your history. In fact, even credit bureaus which offer to provide your credit history to companies you have applied to for loans or credit cards often have the right to show bankruptcy for a longer period of time than the normal bill payment and other credit related records.

Missed mortgage payments, foreclosures or going underwater

If you have a mortgage, missing monthly payments is not good for your credit history. Sometimes, people go underwater, and decide not to pay the mortgage payments going forward when the cost of the house is less than the mortgage amount left to be paid. However, this makes getting loans in the future very difficult.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Get Free Wi-Fi in the Air

By Herbert Moore, Posted: August 9, 2016

Sometimes in-flight Wi-Fi is the bare necessity when you travel abroad or within the country. However not all airlines offer free in-flight Wi-Fi. There is only a couple of airlines that will allow you to use Wi-Fi ... Continue reading

Amazon Credit Cards Review

By Allison Martin, Posted: May 30, 2016

When Amazon.com was launched 20 years ago, few could have envisioned how far the company would come. What was once an online specialty bookstore is now an Internet juggernaut that sells nearly anything and has made major inroads into ... Continue reading

How Much Do Shell Cards Really Save on Gas?

By Allison Martin, Posted: April 20, 2016

There is an endless amount of gas cards on the market, and practically every major gas station, including Shell, has options to choose from. In fact, Shell offers two options for gas cards for consumers. Continue reading