What Hurts Your Credit Score? These 10 Financial Setbacks Won’t


You’ve paid your bills on time. You’ve avoided massive debt, or maybe you’ve paid it down. Now you have a healthy credit score to show for it.

But tough times can happen, no matter how responsible you are. So if you’ve hit a financial rough patch, you’re probably wondering what that means for that score you worked so hard to build.

The good news is that what’s tough on your wallet isn’t always bad for that powerful three-digit number. Here are 10 financial setbacks that won’t affect your credit score.

What Hurts Your Credit Score? 10 Surprising Things That Don’t

For any piece of information to affect your credit score, it has to appear on your credit report. You’ll find lots of information on your credit reports, but the only five credit factors that determine your score are:

  • Payment history35%: Whether you’ve made on-time payments.
  • credit utilization ratio30%: The percentage of revolving credit, ie, what’s available to you through a credit card or line of credit, that you’re using.
  • Age of credit15%: The average of your accounts and how long you’ve had your oldest account.
  • Credit mix10%: Having multiple types of credit, eg, both credit cards and loans, can help your score slightly.
  • New credit10%: When you apply for credit, you get a hard inquiry on your report, which usually dings your score by a few points in the short term.

The following 10 situations may cause you financial pain in other ways, but they won’t impact your credit score. Of course, they could indirectly lower your score if you can’t pay bills or you increase your debt as a result.

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1. You Lost Your Job

You may see the names of your past or present employers if you listed them on a credit application. But the credit bureaus aren’t notified if you lose your job. FICO, the largest credit scoring firm in the US, also doesn’t use your job status to calculate your score.

Of course, if losing your job causes you to miss…


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