Signs Your Credit Score Could Be in Trouble

Knowing the signs your credit score could be in trouble can prevent it from getting worse or better yet improve a credit score. By identifying signs your credit score could be in trouble helps define whether or not your credit is in trouble and what course of action may be necessary to ameliorate the situation.

• Debt repurchased

Often times lenders resell debt at discounted prices to companies willing to manage and collect on that debt. Sometimes the reason debt is resold is because it hasn't been paid or is high risk to the lender. If your loan or credit debt servicer has changed it may be due to a late payment or delinquent account.

• Errors on credit report

Errors on a credit report can negatively affect credit score. For example, if a credit card payment that was actually posted on time by the credit card company was reported as late to a credit agency, a reporting error may have occurred. The Federal Trade Commission suggests contacting credit agencies for which reports have errors; having evidence to support the dispute is also recommended.

• Rental application denied

When seeking to a rent a car, equipment or apartment a company may do a background check to verify credibility. If a rental application is denied, it may be a sign that your credit score is below the company's rental requirement. If a rental application is denied, ask why that is the case and if it has anything to do with your credit.

• Fewer credit offers

Credit agencies distribute credit information to lenders so they may in turn make offers to potential clients. Unless a credit file has been locked or frozen, this credit information is used to determine whether or not offers of credit will be made. If fewer offers are received in the mail, this may be a sign your credit score could be in trouble.

• Lower credit score

Although an obvious indicator a credit score is in trouble is the score itself, this may be less obvious if the fluctuation in credit score is small. In such case, looking at your credit score over time may indicate a slight but gradual trend toward a lower score. This decline may represent an underlying financial issue and may be another sign your credit score is in trouble.

• Credit counseling solicitations

In some cases a sign your credit score may be in trouble may be correspondence from credit counseling companies, bankruptcy attorneys and debt management firms. These organizations and individuals may have access to credit based databases that target persons with jeopardized credit. In such case their marketing may have informed them about your credit score before you yourself become informed.