Ouch! That Hurts My Credit.
February 11th, 2008 Categories: Buyer and Seller Knowledge Center
Transactions that can hurt a credit score are:
- Transferring credit card balances (people do this to get a lower interest rate).
- Settling debts. Ask your tax preparer about this. Congress gave those who had to give up their home a forgiveness clause. Settling credit card debt for less than owed will reduce FICO score.
- Parking tickets, library fines can decreases FICO score.
- Closing credit cards never helps one’s FICO score.
Basic article source: Weird stuff that hurts your credit and Credit Scoring Myths by Liz Weston.
