Somewhere in the world there is an important number that could affect your life. It’s being analyzed by employers, bank lenders, and maybe even government officials. Your credit score is an important factor in all major financial transactions and highest possible credit score lending processes. It’s a good idea to learn exactly what can affect this score negatively, so you can have the best score you can.

There are many different things you can do to not only bring down your credit score, but absolutely crush it. These things are to be avoided at all cost. One of the most common things that can bring your credit down is having a maxed out credit card. Some people fall into such horrible spending patterns and habits that they max out not one, but multiple credit cards. Creditors frown upon this to no avail. It is an eyesore and they want nothing to do with a person who isn’t responsible with their finances. They want to see balances on credit cards at or below 30 percent of your available credit line. For each maxed out line of credit card, your credit score can go down anywhere from 10 to 45 points, and it’s hard to jump back.

Don’t think that late payments go unnoticed. In fact, 30 day late payments can quite effectively bring down your credit score just as fast as maxed out credit cards. Your payment history is one of the biggest factors lenders look at. If you consistently make late payments, it shows that you have no control over your debt payback. This one late payment can dock your credit score down anywhere from 60 to 110 points. The best thing to remember is, always pay the bills on time if you can.

Next, if you already have some debt, there are smart efficient ways to dealing with it. Don’t think you are trapped, but a way of dealing with your debt that you should avoid at all costs is consolidating your debts. Settling your debt may seem advantageous at first because you are going to be able to save some money on the debt that you owe, but it will totally severe your credit report. Debt Settlement shows that you have lost complete control of your finances, and are so desperate that you have to resort to paying your creditors less than what is owed to finalize your account with them. Doing this you will lose about 120 points.

Now, let’s talk about the drastic option of foreclosure and bankruptcy. One of the biggest, if not THE biggest damage you can do to your credit score is when you file for bankruptcy or go through a foreclosure. If you’re trying to get a mortgage, or borrow money in the future, your chances are slim and dismal. Creditors want nothing to do with you after filing for bankruptcy, as this will be on your credit report for the next 10 years. It’s such a devastating blow that can bring your score down as much as 240 points.

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