Six Money Mistakes That Won't Hurt Your Credit Score

worried lady with phone and laptop - credit scoreAlthough there are a lot of ways you can seriously harm your credit score, not every financial misstep comes back to haunt you. Although a single missed payment can drop your score by 100 points, read on to discover several slip-ups that will have little, if any, impact. Mind you, we don't advise any of these, but if you're trying to get your credit health back on track, you can breathe a sigh of relief that your mistake won't set back your efforts.1. Maxing Out Your Small Business Credit Cards. Thankfully, this isn't nearly as bad as maxing out a personal card, according to John Ulzheimer, president of consumer education for Here's why: "Almost none of them report to your personal credit report," Ulzheimer says. Of course, this only holds true if the account is in good standing; if you go delinquent, that's going to show up on your credit report. You can call your card issuer and ask, or check your report and see if any business cards are represented there. Ulzheimer says Capital One tends to report business cards under your personal credit profile, but he adds, "I haven't seen any other examples."

2. Switching Jobs. Switching employment frequently won't ding your score. (It might make you look like a flighty employee, which is a problem in and of itself, but it doesn't touch your FICO score one bit.) Since many employers will check your credit report as part of the hiring process (which we've discussed here), it does behoove you to check your report before applying, though.

3. Neglecting to Establish an Emergency Fund. The same article also points out that while not having an emergency fund isn't good for your peace of mind or your long-term fiscal health, it won't have any impact on your score as long as you're managing to make your credit card or loan payments from month to month. Keep in mind, though, if you have any kind of unforeseen expense, you could wind up not having enough money to pay your bills, which would then impact your credit score.

4. Writing Bad Checks. While this type of action will almost certainly get you in trouble, it won't necessarily hit your credit report. Bounced checks get documented in a database called Chex Systems, but that isn't connected to any of the three reporting bureaus or your credit report. If you bounce checks with any regularity, you might find it difficult to open a new checking account, though. Also, if the party to whom you wrote the bad check takes you to collections over it, that action will show up in your credit file.

5. Taking a Loan From Your 401(k). "Borrowing from your 401(k) is a bad idea, but it won't have any impact on your credit score," says Ulzheimer. While it is a loan, of course, you're technically borrowing from yourself so it doesn't put a damper on your credit score.

6. Not Paying Your Taxes. This is a really, really bad idea for numerous reasons, but unless you're so delinquent that the IRS has slapped a lien on your personal property, it's not going to show up on your credit score, says Ulzheimer. If you owe back taxes, contact the IRS to set up a payment plan before it files a claim against your home, car or other possessions.

Increase your money and finance knowledge from home

Goal Setting

Want to succeed? Then you need goals!

View Course »

Intro to Retirement

Get started early planning for your long term future.

View Course »

Add a Comment

*0 / 3000 Character Maximum


Filter by:

Do yourself a "HUGE FAVOR" and carefully read this:

The 21st Century Act: Final Amendments to Regulation CC Section:
"Prohibits" reimbursement of Credit, Loan, and Finance Balances to a "Bank Entity" leaving only "Nonbank Consumers" able to receive reimbursement, as specified on Pages 85 and 86.

The 21st Century Act states on pg. 85 and 86 that "Only Nonbank Consumers can suffer losses and File for
Re-credit or Re-claim on any Accounts under the Federal Reserve System" also “Any Second or Third Party Presenters utilizing a Banks Documentation, Contracts and/or Agreements to seek Claims shall be considered to be that Bank under the Rules and Regulations”, the Expanded Definitions also includes Credit Cards and Home Equity Lines of Credit.
Also on Pages 100 and 101 "In any Financial Claims the Indemifying Bank (Parent Bank) must be Identified".

(Left-Click to Search Link)
21st Century Act: Final Amendments to Regulation CC

This Federal Law signed January 1, 2006 makes it "Fraudulent" and therefore "Illegal" for the 3 Major Personal Credit Reporting Agencies: Equifax, Experian, and TrasUnion to allow the Banks and the Banks "Third Party Presenters" to place any claim of "Negative" or "Potentially Negative" Accounts on your Personal Credit Based upon the fact that they have no "Legal Grounds or Claim" to the Money.

This is an "Unfair Practice" that diminishes our Financial ability to support ourselves and adversely affects our ability to gain work in many areas which breaks "Antitrust Laws".

These Rules also back claims of: "Aiding and Abetting" Racketeering and Extortion (of Finance Accounts and Personal Credit Reports), Pandering (of Credit and Loan Accounts, and Conspiracy to wit), Theft, Fraud, Federal Mail Fraud, and Telephone Harassment. Also "Threatening of the U.S. Financial Infrastructure", which is a "Capital Crime".

In order to engage the Federal Trade Commission to act against this injustice we must File many Claims, as these Reports must be Filed by a large number of people in order for the Federal Trade Commission to pursue
"Legal Action".

(Left -Click to engage Email Address)

This is way easier than "Occupying Wall Street"!

March 11 2012 at 4:54 PM Report abuse rate up rate down Reply

While I was looking for a credit report site, my firend told me about a site, that offer:

- 100% Free 3 in 1 Credit Report
- Credit Monitoring
- Fraud Protection

All in one...

I tried it and I'm so satisfied with them.I just wanted to recommend you that site:

January 12 2012 at 5:27 AM Report abuse rate up rate down Reply