Chapter 8 Conclusion

In this chapter, we’ve considered the main credit issues—black marks and red flags—that lenders look for when they’re considering a loan or reviewing an account. There’s a big difference between one 30-day late payment and bankruptcy; but both items affect your credit score badly.

Credit bureaus and the lenders they serve are secretive about the specific effects that one or two late payments…or a charge-off, etc.…will have on a specific person’s credit score. But we do know that credit bureaus are constantly trying to improve their abilities to spot trends. They want to see “downward spirals” when they’re just beginning.

As a smart consumer, you should be on the same lookout in your own finances. The best advice that we can offer from all of this black mark information is: If you suspect you’ve got money troubles brewing, contact your lenders while your payments are still timely. Let them know you’re going to need some help.

And keep as much as you can in writing.

Next: Chapter 9 - If Youre Having Money Problems