You know what bad credit is all about. It’s not fun to have, especially when you don’t see it coming. Of course, bad credit loans are a fine solution to your issue. But if you’re not sure what can leave or has left a stain on your credit history, read on. Here are a few surprising situations that can work against you and your credit.
Things You Didn’t Know Could Result in Bad Credit
- Cancelling your gym membership the wrong way
Most (if not all) gym memberships are paid via direct debit from bank account or card. If you want to cancel your contract, there’s a fee for early cancellation. Some smart individuals think it’s easier to just go to the bank and stop the payments. In a way, it is easier. You don’t have to pay the cancellation fee or shamefully admit you’re not a gym person to the super fit receptionist.
The danger here is that some gyms have been known to report that as a non-payment to credit bureaus. Oops. If they believe you owe them money, you’ll be contacted by a collection agency. Hello bad credit. Before signing up, read the fine print and the cancellation policy.
- Not returning your library books
Yep. Hopefully my local library wouldn’t do it, but it has happened. If you were late or just didn’t give back your books and received a fine – pay it. It’s probably no more than $20, but if the library decides it needs that money they’ll pass it to a collection agency
- Not closing utility accounts properly or missing payments on your bills
This is important when you move. Make sure you’ve paid your last bill and that there won’t be another mailed to that address when you’re not there anymore. If you’re ever unsure of where you stand on your utility account, call them and check. Before it gets out of hand.If you’ve been consistently bad at getting the bill paid on time, the company might turn you over to the collection agency.
- Unpaid medical bills
If you’ve ever had to call an ambulance, you would’ve received a bill after your emergency for the cost of the call-out. In that case, you return the letter with your insurance or concession details in order to get out of paying. If you’re not required to pay because you fall into one of the categories listed on the bill, send it back right away. If you don’t, the sum will be given to a collection agency. They will call you, they will send you letters and you can guarantee you’ll have bad credit.
There are so many ways to end up with a poor credit rating, these are just a few that most people don’t consider. Now that you know, you’ll know what to avoid or how to be just that little bit more careful to keep yourself out of trouble. If you’re worried that the state of your credit is going to prevent you from getting ahead in life because you can’t access finance, that’s not a problem. It doesn’t need to be; Bad Credit Loans have a quick enquiry form that you can fill in, to start living again.