Ask Andy: hurt your credit score - Action News 5 - Memphis, Tennessee

Ask Andy: hurt your credit score

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(WMC TV) - You don't pay your bills, you hurt your credit score.

You default on a loan or make a late payment, you hurt your credit score.

These hurt your credit score, too -- according to Lynnette Khalfani-Cox, personal finance expert for AARP:

* RENTAL HISTORY. Credit-raters used to only take into consideration mortgage payment history. Now they also look at how reliable you've been in paying your rent.

* PAYDAY LOANS OR ADVANCE-FEE LOANS. You shouldn't be applying for these anyway. Fast cash at huge interest rates -- of course it will hurt your credit score!

* RETIREMENT, DIVORCE or LOSS OF A SPOUSE. These events can hurt your credit score since they typically cause a dramatic drop in income.

Khalfani-Cox said that last one's about to change. She said the feds passed a new law that forbids creditors, lenders and the credit bureaus from rating consumers based on overall household income. They can only vet the individual applying for credit or a loan. 

That's good for people recently retired, divorced or widowed, but it might be bad for someone whose applying for a credit card on their own for the first time.

Consumers who believe the bureaus or their creditors have unfairly affected their credit scores can file a complaint with the federal Consumer Financial Protection Bureau.

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