What Bills Affect My Credit Score?

Credit card bills affect your credit score.
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Your credit score is a numerical representation of your financial history. The higher the credit score, the more likely a lender is give you a new loan at a favorable rate. Credit scores can range from 350 to 850, with those whose credit score is 760 or higher qualifying for the best rates. Knowing what bills affect a credit score can help you to protect your credit score and work to raise it if needed.

Credit Cards

All credit cards in a borrower's name are listed on a credit report. Note the balance on the card versus the credit limit. This number can have a large impact on your credit score. The lower the balance versus the limit, the better. If a borrower's credit card balances are close to or over the limit, there is a negative impact on his credit score. However, if the balances are kept to less than 25 percent of the limit, the credit score is not negatively impacted.

Car, Student and Home Loans

These three types of loans are common on credit reports. A good payment history on these loans helps to raise your credit score. However, when you take out a new loan, it will have an initial negative impact on a credit score, even with a solid payment history. That's because it will initially show a high balance. Additionally, late payments on these types of loans will not only lower your credit score but will also affect your ability to get new loans. Keep these three loans payments current to keep your credit score and worthiness intact.

Judgements and Liens

A judgement is a court order to repay a debt, typically due to a lawsuit or late child support payments. This bill is then noted on the borrower's credit report after the legal decision, because your credit report includes public information records such as judgements and liens. A lien is a debt tied to a piece of collateral, typically a home. A lien is placed when a borrower has not paid a bill, such as for a home repair. Both of these items are detrimental to a credit score and only appear when a borrower has not paid a bill. There is not a set amount that your score will drop with either of these bills, but both liens and judgements are serious marks against you and will hurt your score. Typically, these are bills that would not have ever been associated with a credit report if paid on time. It is best to avoid these situations, if at all possible. Many lenders will not lend money to individuals with these items on their credit report until the debts are paid in full.


A collection is another form of debt associated with credit reports. A collection is a debt turned over to a collection agency to try to get the money when the first party is unable to get the debtor to repay what is owed. Typically, collections occur for unpaid bills, such as medical bills, although unpaid credit card bills are also turned over to collection agencies. Medical bills and similar types of bills are not typically listed on credit reports unless they go unpaid for extended periods, such as longer than 60 days. These bills have a negative impact on credit scores, however, it is not as large as the impact of judgements and liens. In some cases, if a borrower is applying for new debt, the lender requires that these bills be paid prior to incurring the new loan.

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