These 10 Things Are Destroying Your Credit

Your credit score is one number you should work toward improving, and whether you’re on your way out of debt, or paving the way toward financial independence, your score matters. It’s like an SAT score: the higher, the better.

Open a free account with Credit Sesame. They”ll estimate your credit score, and you don’t even have to enter credit card information. Once you do that, you’ll know where you stand.

I know that when I was getting out of debt, I was excited to see this number rise. When you hit a plateau, you need to focus on something!

No matter what, you want to avoid destroying your credit, right?

Stay away from the following 10 things that are hurting (no, worse, destroying!) your score.

  • These 10 Things Are Destroying Your Credit 1 of 11
  • 1. Opening store credit cards 2 of 11

    The store credit cards always sound like a good idea. Sure, I'd love to save an extra 15% today. But they harm your credit score. Don't open them. Say no thank you. Remember, the salesperson is getting a bonus for signing people up for these. That's why they're pushy.


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  • 2. Carrying a balance 3 of 11

    I'd always heard that carrying a balance was actually good for your credit. That's not true, according to this article in Time Magazine. Pay it all off. Don't let a balance revolve.


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  • 3. Missing a Payment 4 of 11

    If you  miss a payment, even once, it stays on your credit report for years. It's a black mark. Automate that so it never happens again.


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  • 4. Paying your credit card bill late 5 of 11

    Did you miss a payment? Call and pay immediately over the phone. Then ask them to remove the "late" part. Every time you pay late, your credit drops.


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  • 5. Using too much of your available credit 6 of 11

    If you're maxed out (or nearly), that will negatively impact your credit score. Work hard to get that utilization down and your score will skyrocket.


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  • 6. Renting a car using a debit card 7 of 11

    Always use a credit card when renting a car. Rental car companies will allow you to use your debit card, but they'll usually do a hard pull on your credit.


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  • 7. Using an in-store finance plan 8 of 11

    You know those stores that allow you to pay something off in 12 months? Maybe a furniture store or something. Those loans are considered very bad by the reporting agencies, even if they sound fine at the store. Don't do it.


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  • 8. Closing your oldest credit card 9 of 11
    These 10 Things are Destroying Your Credit

    Length of time with credit cards matters. So don't close your oldest one. Keep it open, even if you don't use it anymore.


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  • 9. Having a lot of open credit cards 10 of 11
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    Too many open lines of credit will harm your credit score. Close some of them to help your score (and simplify your life!)


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  • 10. Letting library fees or parking tickets go to collections 11 of 11

    Don't let anything go to collections! This includes parking tickets, outstanding library fines, any bill that someone might try to get you to pay by using a collections agency! Once those bills go to collections, your credit score drops.


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Article Posted 3 years Ago

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