Harlingen Credit Union Shares Five Factors That Harm Your Credit Score

Our Harlingen Credit Union Shares 5 Factors That Harm Your Credit Score

Credit is one of the most important components in the world of finance. High credit scores help people receive loans for major purchases such as homes or cars. They also let your Harlingen credit union see that you’re responsible with your finances and that you’ll be able to repay a loan in a responsible manner. Good credit scores range above 700, fair is 650-699 and anything below 649 is considered bad.

This basically means that a loan received with the help of a high credit score will come with lower interest rates that will make it easier and more affordable to repay.

Get in touch with us to find out more about how your credit score works to your advantage.

Late Payments

Sometimes paying a bill can be tough; either you’re low on money or simply forgot. Timely and consistent payments make up about 35% of your credit score, so you can imagine how much it can dip if payments aren’t being made. Your score can actually fall if payments are consistently late or ignored, and creditors can even increase your interest rate as a result, making it even more difficult to repay.


Unemployment is something many people deal with at some point. Unemployment benefits help financially while trying to find a new job, but depending on this for too long can slightly harm your credit. Additionally, credit bureaus will notice your decline in income and will see it as a factor that can affect your ability to make timely payments for various bills, thus harming your score further.

Applying for Credit

Believe it or not, applying for new forms of credit can harm your score. This usually happens when applying for a new credit card or consolidation loan. If a credit bureau sees that you’re applying for multiple cards within a short time frame, it’ll be seen as you needing credit cards to help make ends meet.

Closing Cards with Balances

Never close a credit card that you still owe money on. By closing a card with a hefty balance remaining, you are effectively removing that line of credit granted to you, which can significantly cause your score to drop. It’s always best to keep the card active until the balance is paid off.

Failing to Correct Inaccuracies

Credit reporting agencies aren’t perfect. Sometimes, when checking your score, you may notice certain inconsistencies such as a wrong address, balance owed for a purchase you never made, etc. This usually happens when your information is mixed up with another person with the same name or similar social security number.

When checking your credit score, make sure all information is 100% correct. If you find any inconsistencies, contact the reporting agency immediately. Failing to do so can jeopardize your chances of securing a loan.

Choose Our Harlingen Credit Union

VFCU, your choice for a Harlingen credit union works hard to ensure that our members are well taken care of. If you feel your credit is low, or need advice on increasing it, get in touch with us in Brownsville today so our team can help you get started.

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