If youve checked your credit score lately and found it to be lower, there is probably an explanation. Even if you havent checked it, youre better off knowing about the things that can lower your score. At the top of the list is paying bills late, keeping high debt levels, owning too many credit cards or not making minimum payments. Here are a few more mistakes that can affect your score for the worse:
Mistake: Closing some older credit card accounts. If you close a credit card account with a low balance and high credit limit, you could be throwing off your overall credit to debt ratio. Fix: Look at your debt to available credit ratio before closing a card.
Mistake: Applying for too many credit cards. When you apply for a new credit credit, the lender will generally run an inquiry on you, which can lower your score 5 to 35 points. Fix: There is nothing wrong with applying for a new credit card—just know that it could lead to a minor dip in your score and avoid applying for too many in a short time period.
Mistake: Not telling creditors when you move or change names. It can mean getting credit card bills late or not at all. Fix: Let all of your lenders know if you change addresses or names.
Mistake: Not checking your credit report annually. Mistakes, issues and missing information on credit reports is common and the only way to catch them is by requesting your report. Fix: Get your free report at annualcreditreport.com
Managing credit well is a piece of cake. Really its all about knowing the facts and staying on track.
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