Your credit score is one of those numbers that can feel like a mystery until you dig into what’s behind it. According to FICO.com, it’s built from five big pieces: payment history, amounts owed, length of credit history, new credit, and types of credit used—in that order of importance. That makes sense, right?
But even if you think you’ve figured it out, some sneaky little habits might drag your score down without you realizing it. Let’s dive into a few more surprising culprits, plus some extra tips to keep your score from hitting rock bottom.
Banning Credit From Your Life
Yup, going full “no credit, no problems” will likely backfire. If you’re not using credit, you’re not giving lenders anything to judge you on. (and while being judged is no fun, you do have to be judged to build a credit score!) Your score thrives on proof that you’re a responsible borrower.
Ditching all your cards—whether you shred them or hide them in a drawer—could leave you with a thin credit file or, worse, no score when you need it.
Want to keep things simple? Stick with one solid credit card, use it for something small like your morning coffee, and pay it off monthly. (always pay it off in full!)
Closing Old Accounts
Tempted to Marie Kondo your wallet and ditch those old cards that don’t “spark joy”? Hold up. Closing an account you’ve had forever can shrink the length of your credit history, which is a big chunk of your score. Plus, it might mess with your debt utilization ratio (more on that later).
That card you’ve had since college might not get much action, but its long, steady history favors you. If there is no annual fee, consider keeping it open and tossing it in a drawer—maybe use it once a year to keep it active.
Opening a New Account
New credit can feel exciting—hello, store discount!—but it’s a double-edged sword. Every time you apply, it triggers a hard inquiry, taking points off your score. And if you open too many accounts quickly, lenders might wonder if you’re desperate for cash.
Planning a big purchase like a house or car? Chill on the new credit accounts and cards for a bit. A higher score could snag you a lower interest rate, and trust me, that’s worth more than a 10% off coupon at the mall.
Owing Too Much, Even If You Pay On Time Every Month
Here’s a shocker: paying your bills religiously doesn’t mean you’re in the clear. If you’re maxing out your cards—or even getting close—creditors get twitchy. They see high balances and think, “Yikes, one bad day and this person’s toast.”
That’s where your debt utilization ratio comes in—how much you owe versus how much credit you’ve got. The magic number? Keep it under 30%.
So, if your limit is $1,000, try not to carry a balance of more than $300 on your card at all times.
Bonus tip: Paying your balance down before the statement closes can keep that ratio looking extra pretty on your credit report.
Paying a Bill Just One Day Late
Life gets hectic, and it’s easy to think, “Oh, one day won’t hurt.” Spoiler: it will. Even a payment that’s a smidge late can get reported and ding your score.
The damage ramps up if you hit 30 or 60 days late, but don’t sleep on that “just one-day” slip-up—it’s still a blemish. Set up auto-payments or calendar reminders so you’re never caught off guard.
More Sneaky Credit Score Saboteurs
- Ignoring Small Balances: Got a $10 charge out there just sitting on an old card? It might not seem like a big deal, but it could jack up your utilization ratio if it’s on a card with a low limit. Clear those tiny debts—it’s low-hanging fruit for a quick score boost.
- Co-signing a Loan: Helping a friend or family member sounds noble, but your credit takes the hit if they miss a payment. You’re just as liable in the eyes of lenders. Think twice before putting your score on the line.
- Not Checking Your Credit Report: Mistakes happen—wrong accounts, late payments you never made—and they can tank your score if you miss them. Pull your free report from AnnualCreditReport.com once a year (or more often now, since they’ve made it free weekly). Spot an error? Dispute it pronto by following the steps that they lay out.
- Racking Up Too Many Store Cards: That “save 20% today” deal at checkout is tempting, but each new card is another inquiry and another hit to your “new credit” category. Plus, they often come with low limits, making it easy to overuse them accidentally.
Before you make any big credit moves—closing accounts, opening new ones, or even co-signing your buddy’s car loan—take a second to look into how it might shake up your score. A quick Google or a chat with a financial-savvy friend could save you a headache (and some points).
You’ve got this—keep your credit score in your corner, and it’ll pay off when you need it most.
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