One thing many people don't realize is that you can't just call up your creditors and ask them to remove a late payment to improve your credit score. In fact, it's illegal! And if you admit to being late on a recorded call, it's even less likely that the negative item can be removed. Plus, creditors are always trying to get up-to-date information, which makes it harder to find mistakes or missing information.
And did you know that paying off collections might not always be the best move? Even if you pay off an older collection, it can update the date of last activity and actually hurt your score.
Here's a breakdown of how much different negative behaviors can impact your credit score:
Hard inquiries: up to 15 points lost
30-day late payment: up to 90 points lost
90-day late payment: up to 150 points lost
Charge off or settlement: up to 150 points lost
Collections: up to 110 points lost
Foreclosure: up to 160 points lost
Bankruptcy: up to 240 points lost
Don't worry, though – we're here to help! Our team of credit professionals can guide you through the process and help you understand how credit scores work. We'll work with you to develop a plan to improve your credit and achieve your financial goals, whether that's owning a home or something else entirely. So don't hesitate to reach out – let's work together to improve your credit score and get you on the path to financial success!