13 Surprising Ways to Wreck Your Credit Score

A seemingly small stumble — such as forgetting to return library books — can cause your credit score to plummet. Discover the unusual ways you can hurt your credit.


One day, you may decide to retrieve your FICO score, only to discover it has taken a tumble because of a seemingly small mishap on your part.

This happened to me a few years back because I misplaced a bill for a whopping $12.70 that ended up being reported to the credit bureaus. Worst of all, the problem stemmed from a charge through automatic billing on a credit card I no longer used.

The result was an 80-point decrease and several months of regret. My credit score has rebounded since then, but thinking about this small oversight still haunts me.

With my precautionary tale in mind, here are some additional mishaps that can damage your FICO score:

1. Car rental reservations

Planning to rent a car? If you use a debit card to make the reservation, the rental car company might require a credit screening, which can ding your credit score.

Here’s a better option: Confirm the reservation with your credit card to avoid the unnecessary credit inquiry and settle the final bill with your debit card upon returning the vehicle.

2. Past-due rent payments

Paying rent on your own time frame may not immediately earn you an eviction notice. But that doesn’t mean the landlord won’t report your delinquency to each of the three credit bureaus.

My advice: If you’re having trouble with rent, meet with the landlord and propose an alternative payment plan until you’re caught up. That way, you can salvage your good name and credit rating.

3. Library delinquency

When you check out a stack of books or DVDs, it’s easy to forget to return them by the appointed time. But the consequences for this oversight can be worse than you’d think.

My local library assesses a fee of 25 cents per day for outstanding items. Once the account reaches $25, an additional fine of $7.95 is tacked on, and the entire account is forwarded to a collection agency.

Get your materials in on time. And if you lose them, fess up and pay the fees. Otherwise, you’ll take a hit to your wallet in the form of fines and, potentially, a lower credit score.

4. Outstanding medical bills

We’ve reported on the option of making payments to ease the financial burden of major medical bills. But if you sign up and don’t hold up your end of the bargain, expect to receive a call from a collection agency.

Promptly tending to the matter bolsters your chances that the payment privileges will be reinstated. However, muting the ringer or sending the calls to voice mail will eventually result in a blemish — in the form of a collection account — to your credit report. Those marks stick around for at least seven years.

5. Delinquent tax obligations

Did you receive a hefty bill from Uncle Sam’s headquarters or the local tax collector for unpaid taxes? You can run, but you can’t hide. They will eventually track you down and demand what they’re owed.

If you fail to respond and work something out, expect your credit score to take a dive.

6. Defaulting on recurring bills

If you are slightly past due on a bill from cellphone, utility or other providers of recurring services, chances are you’ll receive several notices before services are terminated.

But when they’ve had enough, expect to be turned over to collections and subsequently reported to the three credit bureaus. So, don’t ignore correspondence or fail to settle your outstanding obligations.

7. Breached gym membership contracts

Tired of forking over your hard-earned cash each month for a gym membership you aren’t using? Understandable. But walking away without properly closing the account could cost you in the form of early termination penalties and a damaged credit score.

8. Unpaid traffic citations

Most of us are aware of the consequences associated with ignoring tickets issued by law enforcement. But what about those random tickets issued by parking services at the local university or the downtown street patrol?

Ignoring them and failing to pay probably won’t land you in the slammer, but you may be taken aback when the amount — plus a host of fees — shows up as a collection in your credit profile.

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