Credit Concussion

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Credit Concussion

A credit concussion is considered a traumatic financial and budget injury that affects your overall credit. A credit concussion, effects are usually temporary but can include bad budget planning and problems with payment history, over-limits, high credit card balance and too many open accounts.

Concussions are usually caused by a blow in credit score. Violently declining the credit score and negative hits to all 3 credit bureau s also can cause credit concussions. 

Some credit concussions cause you to lose credit approvals, but can be reversed. It's possible to have a credit concussion and not realize it. Concussions are particularly common if you late payments. Most people usually recover fully after a concussion.

Credit Concussion Symptoms

The signs and symptoms of a credit concussion can be slow and may not show up immediately. Symptoms can last for years or months.

The common symptoms of a concussive credit injury are "creditache," loss of credit score points and financial confusion. The budgeting amnesia usually involves forgetting to budget your finances wisely- caused the credit concussion.

Signs and symptoms of a concussion may include:

  • Late payments

  • Too many open accounts

  • Length of open accounts

  • Carrying a high balance

  • Too many recent credit inquiries

  • Closed, Negative, or Derogative Accounts