4 Mistakes That Are Hurting Your Credit Score

If you’re trying to build your credit score, you might be wondering whether you’re making any crucial mistakes.

Building a solid credit score can get you into your dream house or car and it can help to lower the monthly payments you make on all purchases.

Question is … are you making any disastrous mistakes when it comes to your credit? Keep reading to find out.

Mistake #1: Keeping a High Balance

Let’s be honest … maintaining high debt can really hurt your score, especially if your credit card is maxed out.

The three major credit bureaus (Experian, Transunion and Equifax) look at your credit usage factor, and they will penalize you for using too much of your credit.

What to do instead: Increase your income and work on paying down paying down your balances to less than 30% of your available credit limit. Stay with it, and you will soon see your credit scores rise.

Mistake #2: Missed or Late Payments

Skipping a bill payment or paying late can drastically hurt your score, and it will show lenders you are not trustworthy.

If you don’t show your ability to handle your current financial responsibilities, the three credit bureaus will likely lower your score.

What to do instead: Pay your bills on time. Set up a monthly auto-payment of the minimum amount so you’ll never miss a bill. Then you can always revisit your bill later in the month and pay more. 

Mistake #3: Closing a Credit Card Account

Canceling an unneeded credit card may be tempting, but it could come back to hurt you, especially if the account showed a positive payment history.

What to do instead: Don’t cancel unused accounts. While you may not like seeing them on your report, they could be helping to raise your score. Instead, leave the card open and simply store it in a file or cut it with a pair of scissors. 

Mistake #4: Not Having a Good Mix of Credit Accounts

Having several of the same type of credit can hurt your score. Lenders are more likely to frown if you have all credit cards and nothing else. 

Banks like to see you’re able to handle a wide variety of accounts, such as car or home installments, service (utilities) credit and rotating credit. 

What to do instead: Boost your credit score by diversifying the type of credit you borrow. If you have only credit cards, aim to add personal, car or home loans to the mix.


You may be making several crucial mistakes with your credit, including keeping high balances, paying late, closing unused credit card accounts and not having a good mix of accounts. However, if you pay down your balances, never miss payments, keep your accounts open and maintain a good mix of credit, you’ll see your credit score increase over time. If you want more expert tips on raising your credit score, or need some professional one-on-one help, schedule a free consultation and we’d be happy to help.

Credit Professional, ready to help you take your financial future back.


  • Thomas Ridley Reply

    Good info.

  • Derrie Brossette Reply

    The pandemic has played its card regarding my credit. I recently had a couple loans to build my credit. I became I’ll, lost my job. By the time I got money to pay the loans, they were about to chg off.

  • Don Sherow Reply

    Straightforward and to the point. Great advice!

  • ELLIOTT Reply

    My Dear friend,
    Thank you, so very much, for any and all that you offer in regards to this thing called Credit; It’s most definitely appreciated.

  • Duane G Andrew Reply

    My Merrick card has no credit increases and no negotiating with a credit power. The computer makes all decision a . And only card with fee. Also instead of charging one time it’s charges at one time which caused to miss one payment. The computer charges you time. I want to cancel this card because reps tells computer makes all decisions what I need to do with card

  • Montora Atkins Reply

    I need to talk to a live person.

  • victor scott Reply

    how do i get hard inquiries i did not make off? and bad marks?

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