Maintaining a pristine credit score is essential for almost all financial matters. Wise Bread compiled a list of 10 surprising ways your credit score can fall.
A credit score is supposed to be about how you handle credit, so it seems counterintuitive that non-loan actions can bring your credit score down.
Unfortunately, the reality is that even if you aren’t borrowing money, you could still be hurting your credit score. Here are 10 actions that can bring down your score even though they have nothing to do with applying for or receiving credit.
RELATED: Surprising Things That Can Kill Your Credit
1. Skip the Rent
Even though Experian recently started reporting on-time rent payments on consumers’ credit reports, you probably aren’t going to get credit score brownie points for paying the rent right when you should.
Don’t let that fool you into thinking that you can skip rent payments or pay your rent late on a regular basis without a negative impact on your score, though. If your landlord decides that he or she is sick of your slow payments, you can be reported to the credit bureaus.
On top of that, your landlord can ask a collection agency to attempt to collect on your delinquent payments. Once that happens, the credit bureaus find out and report it. Now your non-credit rent payment is dragging your credit score lower.
2. Failure to Pay Medical Bills
With the rising costs of health care, even those with health insurance can find themselves facing high medical bills. Don’t ignore these bills, though. Health care service providers can decide to report your unpaid bills to the credit bureaus or send your account to collection. Collection accounts look especially bad on a credit report.
Many hospitals and other health care providers are willing to work with you on large bills. If you can pay a large portion of the bill immediately, you might be able to get a discount on your health care. Or, if you can’t pay a large portion, you might be able to work out a payment plan. Realize, though, that you might be charged interest, or a fee, for a payment plan.
3. Ignore Library Fines
For many people, the idea that a $5 library fine could be harmful to their financial situation seems silly. However, not paying could cost you even more than what you owe. In order to collect more money and help ease strained local budgets, some libraries have been sending unpaid fines to collection agencies.
Once your library fines go to the collection agency, it appears on your credit report. On top of that, the collection agency might add its own fees to the fine. Your $5 library fine could easily balloon into a $20 or $30 cost — and bring down your credit rating on top of it all.
Read on for more.