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Posted on 5 January 2020 | 2,037 views

4 Mistakes That can Hurt a Credit Score

How to Boost Your FICO Score wanted to share the four mistakes that can ‘hurt’ a credit score — be careful not to max out those credit cards. Potential lenders also care about how much a person is charging on their card, because the more they spend the less likely they will be able to repay the debt — this is where credit card utilization comes in.

A utilization rate is calculated by dividing total balances by total limits. It significantly impacts a credit score and advises to keep the utilization rate between 1 and 20 percent so it shows that person is using their credit, but not relying on it.

The number two credit score saver is making those payments on time — just one or two late payments can drastically effect a credit score.

A third step is to avoid applying for a lot of credit — racking up a bunch of hard inquiries makes a person look desperate for credit. While one or two hard inquiries a year should not affect a score by much, a lot of those inquiries can cause significant damage.

Finally, make sure to monitor your credit score — one in five consumers have errors on at least one credit report. Check your credit score and credit report for free at annualcreditreport.com to learn more about your credit report.

4 Mistakes That can Hurt a Credit Score

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