3 Common Mistakes That Can Lower Your Credit Score 💳❌

Whether you know it or not, certain habits can hurt your credit score—even if you’re not buying a home anytime soon. Your score matters for refinancing, buying a car, or even getting the best loan options in the future.

Here’s the thing: some actions you think are helping your credit could actually be doing the opposite! Let’s break down the three most common mistakes so you can avoid them.

Mistake 1: “I’m caught up now, so the late payment won’t hurt.”

Paying your bills late, even once, can impact your score. Catching up doesn’t erase the fact that the payment was late. ⏳

Tip: Prioritize paying the accounts that report to credit bureaus first. It may take 1–3 weeks for a payment to show up, so check your credit report to understand how quickly each lender reports.

Mistake 2: “The dollar amount matters, right?”

Surprisingly, the size of the late payment doesn’t matter—a $1 late payment affects your score the same as a $1,000 late payment! 💸

What helps your score? Low balances on high-limit cards. Contact your credit card companies to increase your limits, but keep balances low—ideally under 50% of your available credit.

Mistake 3: Closing old credit card accounts improves your score.

Not true! Closing a long-standing account can actually lower your score by shortening your credit history. 🛑

Instead, keep older accounts open and active, using them for small purchases. This helps maintain a long, positive credit history, which is a big boost for your score.

Avoid these mistakes, and you’ll be in a great position to maintain—or even improve—your credit score.

Questions about your credit report or ways to improve your score? 📧 Email me anytime—I’m here to help!