Credit ratings are generated by three major credit bureaus (Experian, Equifax, and Transunion). They all use a special method. The greater the number, the better your credit rating. Specific events can have a adverse influence on your score and may potentially prevent you from being approved for a home loan. The following are precautions for future NH home buyers on credit behaviors that decrease your ranking.

Credit Behaviors That Decrease Your Ranking

Paying Bills After Due Dates

Delinquencies demonstrate poor credit behavior and will therefore drop your ranking. How late you are (30, 60, or 90+ days) and the number of times you are late also are considered. Delinquencies stay on your credit report for an extended period of time.

Collection Activity

If you are really behind on payments and a credit provider has completed their own efforts to get anything from you, they may move your account to a collection agency. This is reported to the credit bureaus. The information will stay on your credit file even if you pay off the debt.


If a lender is unsuccessful in obtaining the total balance of the bill, they may "charge-off" the remaining amount. This could apply if you completely fail to send payments or if you settle for a payoff below the total amount. Charge-offs stay on your credit report for seven years. Future creditors will see this and debate whether you will continue with this behavior.

Matters of Public Record

Bankruptcy, tax liens, judgments, foreclosures, and other similar matters are part public record. Regardless of whether you settle these accounts, the initial submission is reflected in your credit report. Particular items stay for seven to ten years and others (such as liens) never disappear. Therefore, it is critical not to let issues get this far.

Precautions For Future NH Home Buyers

All of the credit behaviors that decrease your ranking offered above mark you as a risky client and could result in higher interest rates or completely prevent you from getting approved for loans. Demonstrate responsible payment patterns and it will save you time, money, and disappointment when it comes to buying a home. These are the best precautions for future NH home buyers. this details only a few common credit mistakes. Speak with a financial advisor for advice on your particular situation.