What would you say if I said that you could have perfect credit for  $25.00 or less? You’d probably think to yourself “another credit repair scam” It’s not, but let me explain what I’m talking about.

I was chatting with a client last week about his credit report. He was really upset with himself because he unknowingly let a medical co-pay turn into a collection account. Until this, he had nearly perfect credit. He was mad because it was a misunderstanding. He had medical coverage from  his job and just wasn’t aware of the co-pay.

I made the comment “you’re not alone, if I had a nickel every time I’ve seen co-pays on credit reports”

I made that comment in jest but I started thinking – Man it’s true, we see that an awful lot. The next morning I came in a little early and pulled about a hundred files. I was interested to see how many people have actually had their credit damaged over little things that could have easily been avoided.

18 of the 100 or so files contained errors that could have been avoided for $25.00 or less. Here are the most common mistakes I found. Although it’s not funny, it almost sounds like a Letterman Top 10 list.

Medical Co-pays: A lot of consumers think that because they have medical coverage, their responsibility ends there. Clearly that’s not always the case. Check with your employer AND doctor and be sure of any small obligations you may have.
12 of the 18 credit reports had co-pays for $25.00 or less.

Credit Card Late Fees: Capital One is notorious for this. Let’s say your credit card payment is due the 1st. You have a 10 day grace period, but a lot of consumers get paid on the 15th and make their payments then. You’re not officially late in terms of credit reporting, but once you’ve crossed that 10 grace period,  Credit Card companies usually add a late charge of 15 to 25 dollars. Here’s the crappy part. They love to NOT tell you about the fee and as soon as that 30 day mark comes, they ding your credit report late based on that fee you didn’t know about.
8 of the 18 credit reports had late fees for $25.00 or less.

Over The Limit Fees: Same as the late fees. If you go over your credit limit, a fee will be accessed. They love to not mention this too. Make sure you pay that fee with your monthly payment or it could end up being a 30 day late.
6 of the 18 credit reports had over the limit fees for $25.00 or less.

BlockBuster: Ever rent a movie and are too lazy to turn it in the next day? I have, Sometimes I feel like I’m on the rent to own program (ya I’m that lazy). Those late fees can and do get turned over to collections if you don’t take care of them.
4 of the 18 credit reports had blockbuster for 25.00 or less.

Pizza Hut: Yes Pizza Hut! Apparently a lot of people have a bad month or two and will accidentally write a bad check for that extra pepperoni & Olive. Now most of them covered the check, but forgot the bounced check charge for 25.00 and it ends up in collections. If you float checks for pizza, make sure you cover the bounced check fees as well.
3 of the 18 credit reports had Pizza Hut for 25.00 or less.

Folks, those little fees you either don't know about, or think are petty can cause a lot of damage. Don't let a couple dollars ruin your credit.