EL PASO - A report by the Corporation for Enterprise Development ranked the average credit scores of Texans at 49 of 50 states. Only Nevada residents had worse credit in the study.
Financial experts say one of the most common sources of bad credit is unpaid medical expenses. A single emergency room visit, for example, can result in multiple bills which can sometimes be confusing. Occasionally, one of the bills can get overlooked, leading to calls from a collection agency and bad credit.
Another way good credit can be soured is late payment. Before the financial crisis of 2007, a few late payments every now and then had little effect on credit. In an effort to try to better identify those who are credit risks, the penalty of a late payment is now much more significant. It may take as long as a year of on-time payments to repair the damage of a one time late payment.