Negative Information

Negative Information on Your Credit report

Your credit report may list some old, unpaid debts—ones you might have forgotten. Perhaps an old debt was forwarded to a collection agency. When the collection agency could not find you, it reported the delinquent debt to the credit bureaus. This is an example of negative credit information.

• Unpaid debts
• Collection
• Late payments on credit cards and loans
• Unpaid debts.
• Bankruptcy
• Court judgments against you, such as child support payments or lawsuits in which you owe money.
  

In addtion, the follwing information contributes to lowering your credit score.

High balances. If the balances on your credit cards are close to or equal to your maximum credit limit, it can negatively affect your credit. Pay off the balances before you apply for new credit. Even if you are up-to-date with your payments, you may be turned down for new credit because lenders believe you owe too much money.

Too many applications. Several recent applications for credit can be seen as a warning sign that you might overextend your credit use. Apply only for the credit you need. When you apply for credit, the application shows up on your credit report, whether or not you are approved. The credit bureaus call this an "inquiry."