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Low Credit Score: 3 Things That Kill Your Credit Score

Are you scared to check your credit score? Don’t worry; you’re not alone. Credit scores can be intimidating and complicated as it involves rules that may be difficult to understand. The good thing is, when you understand the basics, credit scores are actually simple.

Your credit score is a calculation of how likely you are to repay your debt based on your past behavior of borrowing and repaying your money. It’s essential to have a good credit score, which is why you should maintain it.

On the other hand, if you have a poor credit score, you can build and repair it. So, don’t lose hope. One of the first steps to fix your credit score is to know the things that could affect your credit score negatively.

Late Payments

Missing a loan repayment of your credit card may not seem like a big deal, but a record of it will stay on your credit file for up to six years. With that, it can impact your credit score.

So, if you have developed the habit of missing a payment every now and then, consider thinking about setting up an overdraft with your bank. Sure, overdrafts have downsides, but they can act as a buffer against missed payments.

Default on Debt

If you choose not to pay off a debt, you might think it’s the easiest way out. However, it won’t do your credit score any good. It’s one of the biggest credit score killers because it will show lenders that you’ve struggled to repay debt in the past. With that, they will see that you will struggle to repay your debt in the future.

In the case that you haven’t repaid the debt, it’s best you pay off what you owe. Or, you can provide an explanation or wait it out.

Getting a County Court Judgment (CCJ)

A CCJ is a letter from the Courts demanding you pay your debt. If you receive a CCJ, trust that it is definitely a sure way to kill your credit score.

Getting served with a CCJ will significantly impact your credit score, which will make taking out a loan challenging for you for up to six years.

Remember, when you receive a CCJ, don’t panic. If you think you can pay off the debt within a month, it won’t be recorded on your file, which means that it won’t affect your credit score. On the other hand, if this isn’t possible, it’s best you pay your loan as soon as possible.


A good credit score is essential, especially if you have plans to take out a loan or credit. Even if you think you don’t need a loan right now, a good credit score will go a long way if you do decide to make a big purchase in the future. One way to take care of your credit score is to know the factors that could adversely affect your negative score. By knowing these things, you will know how you can improve and maintain your credit score.

Central Loan & Finance, serving Atlanta since 1967, offers a variety of personal loan sizes to fit your needs. We offer installment loans. Apply now!

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