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4 Mistakes That Will Hurt Your Credit Score

Written on:August 1, 2010
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Credit score mistakesWe’ve talked a bit about improving your credit score so far, but sometimes taking matters into your own hands can result in a lower credit score. This article will list the four most common mistakes people make when trying to improve their credit scores.

1. Don’t make a late payment

A late or even a missed payment will hurt your credit score, even more so if it’s already high. If you often have negative items on your credit reports one more won’t do much difference, but if you keep paying your bills in time and you miss one it can lower your credit score by even 100 points!

2. Don’t consolidate your accounts

If you don’t need a new bank account, don’t apply for one! It’s always better to have smaller balances spread on several credit cards than having a big balance on one.

3. Don’t apply for unnecessary credit

Simple but still worth noting: just because you can it doesn’t mean you should take a new credit. Keep in mind however that receiving an installment loan can help your scores in case you don’t have any previous installment accounts, or in case you’re trying to recover from a bankruptcy.

4. Don’t ask a creditor to lower your limits

The bigger the gap between your balances and available credit, the better your credit score will be. Unless asked, don’t lower your credit limits.

Now that you know the most frequent mistakes people make when trying to improve their credit score, you might want to read what exactly you should do to improve it.

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