We recently sat down with Arnita Johnson of Luxurious Credit for an exclusive interview on the importance of establishing and maintaining good credit.
Arnita says the 4 things that tend to hurt our credit scores the most are:
- Late payments
- Collection Accounts
Anything derogatory, such as late payments, collection accounts, charge-offs, repossessions can hurt your credit score. I think the misconception about credit is ‘My credit isn’t that bad’. Well, that really is no such thing as ‘that bad’. It’s either good or it’s bad. Now of course, [newer] information hurts the credit report more [than] older accounts. But late payments, I would say, hurts the credit the most especially if they are new. Lenders are focused on what you are doing now. If they’re seeing that you have late payments now, then that is definitely going to give them [the impression] that something is going on now that you cannot pay your bills on time.
For people who have severely damaged credit, Arnita says there are three things that you can do to start the credit repair process.
- Pay your bills on time.
- Dispute any inaccurate information.
- Apply for one or two new secured credit cards.
Once your credit becomes severely damaged, you definitely want to do something about it. [This means] reestablishing your credit and paying your current bills on time while that inaccurate information is being challenged with the credit bureau. I’ve seen severely damaged [credit]. I’ve had severely damaged [credit], so it is definitely repairable. You just have to start somewhere.
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