[If you’re working to build credit or even rebuild it, you probably know that it’s not an overnight change. No matter what credit repair companies promise, most of the time you won’t see a jump in your score in a few days. Instead, it’s a long process that takes a lot of work and some time.
On the other hand, going from good to bad credit can happen overnight. It only takes one wrong move to see your score plummet from the pinnacle of excellent down to the pitfalls of poor credit. In fact, the adage “the greater they are, the harder they fall” is true about credit scores. If you have good to excellent credit and make one mistake, it can cause your score to drop dramatically. Someone with poor credit won’t see much of an impact with one more negative item.
What Causes Credit Scores to Fall?
The worst thing you can do to your credit rating is quite possibly make a late payment. One payment that is more than 30 days late can cause your score to fall by 100 points or more, especially if it’s your first one.
Increasing the usage on your credit cards will also lower your credit score, though not by as much as making a late payment. When your accounts go to collections and the account shows up as new on your credit history, that item will also cause a drop in your credit score.
Technically, it takes more than one day for these issues to happen. However, once they are posted to your credit report, the effect is immediate. Unfortunately, it isn’t as easy to fix bad credit and get it back to the point where it once was.
If you have good credit, you need to protect it. One mistake can haunt you for a long time. It can prevent you from enjoying the same status as you once did when you were fortunate to have good credit.
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