Easy ways to kill your credit score.
Whether for some mysterious reason you purposely want to kill your credit score or you just don’t know what the heck you are doing,
here are five sure ways to kill your credit score fast.
1. Use your card like there is no tomorrow.
The smaller the difference between how much you owe on a credit card versus how much you can borrow, the lower your credit score. If you want to kill your credit score instantly, make sure you use all the money that your credit card company is willing to lend to you. So, go max out all of your credit cards and push them to their limits.
2. Open a store credit card every time you visit a new store. Many stores are generously offering you to open their credit card as soon as you step your foot into that store. They tempt you with coupons and “great rewards” and if you don’t bite right away, they offer you a whooping 10% on your purchase if you apply to their credit card immediately. So go ahead and agree to every one of these fantastic offers.
3. Close all of the credit cards which you just opened. Now that you opened all of the credit cards you may be tempted and “cheat the system” by closing them right away. Sine you already saved $7 on a shirt you just bought, you can close the card and still keep the discount. Smart, huh? Sure, if you want to kill your credit score instantly, it is a very smart move. Since part of your credit score depends on how long the credit cards were open, closing your credit cards will surely lower your credit score.
4. Default on a loan. Defaulting on a loan will severely damage your credit rating and will have a negative impact on it for years. Additionally, it will also affect the rating of your cosigner.
5. Skip a few payments. If you are 30 days late in paying your bill, your credit score can go down up to 110 points. The higher your score is initially, the higher the penalty you would get. If your credit score is shamefully low already, you are still going to lose at least 60 points.
6. Lose your home to foreclosure. It will do even a better job than late payments will, because it can lower your credit score up to 160 points. If your credit score is low, it will still lower it by at least 85 points. Foreclosure stays on your credit report from seven to ten years.
7. If you are really determined to have the lowest credit score possible, file for bankruptcy. Nothing will do as much damage to your score as bankruptcy will, so you have a real winner here. It will be nearly impossible for you to get a mortgage or a loan and it will take years to boost your credit score back up. Bankruptcy will lower your credit score by up to 240 points (if it is on a higher range) and will lower it by at least 130 points if it is already low.
