Which action can create a negative impact on your credit history?

Not paying your bills on time is a sure way to worsen your credit. Companies look at your ability to pay bills on time, and pay back what you owe. Big purchases, too, like a down payment on a house will cause your credit to take a blow.

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Not being able to pay back your bills will create a negative problem with your credit history, as banks and other associates will see that you cannot keep a straight and consecutive payment, will make you untrustworthy and unreliable to pay back money. This can affect stuff for when you want to take out a loan and you would be declined because of your recent credit history of not being able to pay back bills, which indicates that your credit score itself probably is low.

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