credit-rating5Factors That Negatively Affect Credit – Part 5

This week we have been looking at factors that negatively affect your credit scores.

Today we will look at your credit balances.

If you have unpaid collection accounts many times a negotiation and payment of the account will raise your scores significantly. You have to be careful because some times paying off a collection account will cause your scores to decline.

If your credit card balances are too high it will negatively affect your scores. You can use the “Snow Ball” payment plan to bring these cards under control. Sometimes spreading your debt will increase your scores.

Many times you will need a budget analysis to see how you can spend your monies more wisely. It does not take long to get into trouble if you are spending more than you are bringing in. It may take some discipline but you will be amazed at how quickly you can begin to see progress.

Some types of loans affect your scores negatively as well. There are certain types of lending that you need to stay away from. You may need some guidance before you make lending decisions.

At HOPE we can guide you through the maze of hurdles it takes to have good credit scores. If you would like to know more please call us at 704-503-3669.

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