When you think of your credit score, it’s natural for your thoughts to jump immediately to loans. After all, it’s a credit score. It’s supposed to be all about what goes on when you borrow money. However, even so, there are times when your non-credit actions can lead to problems with your credit score.
Increasingly, all of your financial decisions are connected. If you aren’t careful, some of your non-credit indiscretions could end up on your credit report — and drag down your score.
Unpaid Library Fines
You might not think it’s a big deal to avoid paying your library fines. It’s not a loan, and you probably will return the book…eventually. However, this might not always be the case. Increasingly, libraries are turning unpaid fines over to collections agencies. Looking for sources of revenue, these libraries are looking to collect on outstanding accounts.
So, not only will you be unable to check out a book next time you go to the library, but you might also end up with your account in collections, which makes it visible on your credit report.
Improperly Cancelled Gym Membership
Read the fine print when you sign a gym contract. Chances are that you are required to physically come into the gym, and fill out paperwork, when you want to cancel. If you don’t cancel properly, the gym still has the right to keep asking for your money each month. Many consumers just stop paying their membership fees, or they direct automatic billing agreements to end. The problem is that the gym keeps charging and sees the non-payment as a problem. All of those non-payments are added up and then turned over to collections, and listed on your credit report.
Unpaid Parking Tickets
If you don’t pay your parking tickets, you might find yourself faced with a big bill and a notice from a collections agency. More cities are taking steps to collect on these unpaid tickets. Being a scofflaw could mean a hit to your credit rating, not to mention that you will have to pay any additional penalties and interest in order to discharge the account which has — of course — been turned over to collections.
Missed Utilities Payments
When my husband and I moved from Syracuse, New York, to Utah, our final utility payment was lost in the shuffle. Nine months later, I received a notice from a collections company. After tracking down the paperwork, I discovered that I did, in fact, owe money. That incident ended up as a blip on my credit report, and it affected my credit score for the next couple of years.
The common thread is the fact that these non-credit service providers can turn your account over to collections. At that point, it becomes a problem that can impact your credit score. Want to find out where your credit score stands? Get started with Quizzle today and get your free credit report and score, no purchase or credit card necessary!
