Credit Scores: Library Fines to Car Rentals

There are many items that can adversely affect your credit score that you are unaware of.  Library fines lower credit scores for individuals.  Here are some other activities that can lower your credit score.

  • Credit ScoreAlthough libraries do not report to credit reporting agencies directly, they do turn to collection agencies for unpaid balances.
  • Storage units will turn unpaid balances over to collection agencies.  Even if items are left in the storage unit and auctioned off, the payment still needs to be paid.
  • Closing certain accounts can lower your credit score.  Yes, we know that closing credit accounts can affect your credit score, but closing any kind of account can as well.  Make sure that after you close any account, you pay any final or recurring bill so that these are not sent to a collection agency.
  • Renting vehicles can be tricky.  Some car rental agencies will run your credit report before lending you a car and/or if you decide to reserve the car with a debit card.  It is a safe bet to use a credit card to reserve the car, even if you want to use the debit card to pay for it, that way they do not run your credit report.

A collection account can lower your credit score by 25-100+ points, and can stay on your credit report for up to 7.5 years from the bill’s due date.  Credit reports and credit scores are tricky so it is important to learn as much as you can.

What items would you add to this list?