Comparison of different types of accounts and their impacts on your credit score

Part 20: As part of series of articles (blogs) regarding Credit and Credit Score, here we go:

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Comparison of different types of accounts and their impacts on your credit score

Different accounts have different impacts on credit score based on the type of account (e.g., purchase, charge off, medical bills, etc), age of the account, amount of the account, etc.
The following table illustrates, as an example, which types of accounts have more negative impacts on your credit score and looks worse in the view of lenders.
X indicates a more negative impact on credit score.

Table 2: Comparison of different types of accounts and their impacts on your credit score.

Charged off

Which one has more

No. of Times/days

Closed Account

Negative  Impact on

Being Late

Collection

$Amount

Account Type   Date Reported

Credit Score? (X)

Account 1

30-day

$1

Purchase         1 Month ago  X

X

Account 2

90-day

$100

Purchase       28 Months ago

Account 1

2 times 30-day

$1 and $50

Purchase      within last year  X

X

Account 2

1 time 90-day

$100

Purchase      within last year

Account 1

$2.38

$2.38

Purchase      2 Months ago  X

X

Account 2

$800

$800

Medical Bill   12 Months ago

Account 1

$2.38 and $5.89

$8.27

Purchase    within last year     X

X

Account 2

$800

800

Purchase    2 ½ years ago

Account 1

$2.38

$2.38

Purchase     within last year    X

X

Account 2

$800

$800

Purchase     30 Months ago

Account 1

30-day

$800

Mortgage   within last year       X

X

Account 2

90-day

$900

Purchase   within last year

Account 1

$1,800

$1,800

Derogatory  within last year     X

X

Account 2

$5,900

$5,900

Purchase     within last year

Account 1

Settled as Agreed

$800

Purchase  within last two years X

X

Account 2

Paid as Agreed

$900

Purchase  within last two years

 

HOW to overcome the problems with your credit history and credit score?
Knowledge, education, awareness, practice and discipline are the essential keys to being successful on any subject. The book, "Credit Score Tips and Tricks", provides you information, tools, techniques to educate yourself and manage your credit report & credit score, and therefore manage your finances effectively at no additional cost.

I have decided to bring and share with you, chapters or sections of my book, Credit Score Tips and Tricks, as series of articles here. This is the number 20 of such a series.

I also created and manage a GROUP in ActiveRain, Credit Reports and Credit Scores, Please feel free to join and share your thoughts and experiences.

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