Five Things That Seriously Harm Your Credit Score

Good credit is more that just a nice thing to have; it’s essential if you are buying a home. Unfortunately, some people don’t consider the fallout of poor credit or how long the effects can last (Which is years!) Fortunately, there are steps you can take to clean up damaged credit, but in this blog post we are going to look at five ways you can seriously damage your score. Keep in mind that you need to have a history of some kind of credit to even have a score – it’s not something that is issued, like a social security card. So start with something small, perhaps an American express that you use to pay for gas and pay it off in its entirety every month. Otherwise, if you have various forms of credit, take a close look at your three reporting agencies to make sure everything is correct and up to date. These aren’t the only things that can harm your score, but they are a good scope of things to begin to look at.

Five Things That Seriously Harm Your Credit Score

  •  Paying Things Late (Delinquencies)
  •  Having An Account Sent To Collections
  •  Defaulting On A Loan
  •  Foreclosure
  •  Filinf Bankruptcy

About 35% of your credit score is composed of the timeliness of your payments – meaning, if you pay your payment by the date it is due. This is a high factor for credit. One late payment may not trip you up badly, but multiple ones, particularly consecutive ones, will. One way to assure you aren’t late is to set up automatic deduction from your bank account. Only do this if you are sure the money will be there, because if not, you will face penalties and fees from not having adequate funds.

When a lender just gives up on you paying and sends you to collections, that looks especially bad for your credit. That’s why it is important to pay late payments or iron out disputed payments with lenders in a timely manner.

One of the biggest loans defaulted on are student loans – people just stop paying them, without trying to work out a payment plan or having them deferred. This is unfortunate becuase a lot of the time, if you truly are low-income, your student loans will qualify to be deferred for a set amount of time without harming your credit in any way – you just have to communicate with your lender! If you defualt on a vehicle loan, the default will be on your credit report and the vehicle will likely be reposessed – both extremely hard things to bounce back from. Don’t buy vehicles you can’t afford, and sell expensive vehicles if you fall on hard times for something more economical.

Foreclosure of a home is another nasty mark – it means you defaulted on the loan of a home and your home was taken from you by the bank. There are many ways to avoid this, including selling the home and short-selling the home if need be. Anything is better than foreclosure. Contact an experienced real estate agent to discuss your options before it comes to this.

Sometimes, if you have a lot of unsecured debt, such as very high credit card debt amounts, bankruptcy becomes your only viable option. The best scenario is to never get into this situation – keep all of your credit cards at less than 30% of their maximum debt, and pay more than the minumum every month. Bankruptcy stays on your credit report for years and can harm your credit score, so do everything in your power to solve your financial problems before it gets to bankruptcy.
<

Are You Thinking of Buying a Home in Dubois County?

Use our site to search homes for sale in Jasper, Dubois, Spencer, Martin and Davis counties and all of our surrounding areas. Unlike the “big name” sites out there, at Sell 4 Free Welsh Realty our site is directly connected to our local MLS and is updated with new homes every hour. By signing up for New Listing alerts you can stay on top of the newest homes for sale and get price change alerts so you can stay ahead of other buyers and beat them to the hottest deals!

Start your Home Search now

Popular Jasper Indiana Home Searches:

Newest Homes for Sale in Dubois County

View the newest homes listed in Dubois County in the last 10 days:

Situated on a .28 acre lot in Holland is this approximately 1878 sq. ft. home. Features include 4 bedrooms, 1 full bathroom. a partial unfinished basement with a walk-up entrance, a detached garage, and a 36X48X14 high pole barn type block building. The kitchen offers an abundance of oak cabinets, an eat-at bar and a range and refrigerator. Just off of the kitchen is a large dining room and adjacent to the dining area is the oversized living room. There is also an extra room that could be made into the drop zone area or a main floor laundry room. There are 2 bedrooms on the main floor as well as 2 additional bedrooms on the upper level. The unfinished basement is great for storage. The roof on the home and the large building are approximately 3 years old. $210,000 Active

208 E Mary Street Holland, Indiana

4 Beds 1 Baths 1,878 SqFt 0.28 Acres

Listing courtesy of Gary Schnell from SELL4FREE-WELSH REALTY CORPORATION.

Nestled in a quiet cul-de-sac on Jasper’s desirable west side, this beautifully maintained 3-bedroom, 3-bath home offers comfort, convenience, and style—all in one perfect package. From the moment you arrive, the fresh landscaping and inviting curb appeal draw you in. Step onto the welcoming covered front porch, and enter into a spacious foyer that opens up to a bright 17' x 17' living room with cathedral ceilings, creating a warm and open feel.  The eat-in kitchen, updated in June 2022, features stunning Quartz countertops and backsplash, a new sink and disposal, and upgraded appliances installed in August 2023—perfect for any culinary enthusiast.  A split floor plan offers added privacy, with the spacious owner's suite boasting a large walk-in closet and a newly installed cultured marble walk-in shower with glass doors (June 2024). Two additional bedrooms and a full bath are located on the opposite side of the home. Head downstairs to a fully finished basement that’s an entertainer’s dream. Enjoy a custom bar, expansive rec room ideal for movie nights or ping pong, a full bath, a dedicated office area, a bonus room currently used as a fourth bedroom, and a generous storage room with built-in shelving. Outdoor living is just as impressive with a maintenance-free deck and screened porch, offering the perfect spot to relax and unwind. A 2-car attached garage and spacious driveway provide ample parking. Additional Features & Updates: Roof & tankless on-demand water heater – June 2020 Kitchen appliances & washer/dryer – August 2023 Furnace with Ecobee Premium SmartSensor thermostat – February 2024 New sump pump – April 2025 Jambini magnetic cabinet locks – June 2020 This move-in-ready home has it all—modern updates, versatile living spaces, and a peaceful yet convenient location. $329,700 Pending

391 Gardenia Lane Jasper, Indiana

3 Beds 3 Baths 2,977 SqFt 0.25 Acres

Listing courtesy of Brenda Welsh from SELL4FREE-WELSH REALTY CORPORATION.

Situated on a .47 acre corner lot is this "move in ready" 1258 sq. ft. ranch style home featuring an attractive stone and vinyl exterior. Features include an open concept floor plan with a neutral decor throughout including laminate and ceramic tile floors and carpeting in all bedrooms. This home offers 3 bedrooms and 2 full bathrooms with wider doorways. The extra large 25X27 attached garage is heated and cooled and includes a work bench area and cabinets. There is a rear covered porch and an additional patio with a pergola, and a 10X12 storage building. The driveway offers a back-out space for extra parking and ease of exiting the driveway as well as a new RV parking pad. Also included is an underground invisible pet fence.  Additional updates include all LED lighting and new carpeting in all 3 bedrooms as well as a new range in the kitchen. All kithcen appliances as well as the washer and dryer are included along with custom window shades. $262,900 Pending

4020 N Portersville Road Jasper, Indiana

3 Beds 2 Baths 1,258 SqFt 0.47 Acres

Listing courtesy of Gary Schnell from SELL4FREE-WELSH REALTY CORPORATION.