We all know that missing a payment will hurt our credit score. Other things that can lower our credit score are bankruptcy, defaults, delayed payment, applying for credit too often and so on. This makes sense.
What if I say that an overdue library book or reservation for a rental car could negative impact your credit score? Well, the truth is it does.
A library fine that exceeds $50, if remained unpaid, can be sent over to a collection agency. Even though, the library won’t report the overdue account to the credit bureaus, the collection agency will do. So, if you’ve had borrowed a book from the library, which is overdue and never paid much heed to, now is the best time to reconsider.
If you happened to reserve a car with a debit card, some car rental companies will perform a hard inquiry on your credit report. If these kinds of inquiries pile up over time, then this will lower your credit score.
Storage units can also lower your score if you don’t pay your bills. If you don’t pay your bills for a few months, then most storage facilities will auction off your goods, but they won’t accept the auction proceedings from the sale of your items as a pull payment of the account. If you still owe them money after selling the items, then you’ll have to pay the remaining balance. If you fail, then this could result in a negative mark on your credit report.
The bottom line, credit problems can arise from a variety of sources, if don’t want any harm to your credit score. If your credit score is low, this could result in higher interest rates on your future loans and credit cards. So, keep an eye for these kind of uncommon charges, and pay them off before they go to collections.