What Can Hurt My Credit Score?

image.png

 

Keeping up good habits is incredibly important when it comes to your finances. With a stronger credit score you may find it easier to get more fairly priced loans, have an easier time purchasing dream cars or homes, and even in some cases you may be more likely to have a higher paying job. While a few small mistakes will rarely leave permanent damage on your credit score, having multiple bad financial habits can leave a more significant negative affect on your score over a longer period of time.

To better understand what these habits are, we've compiled a list of things to keep in mind as you lay the foundations of your credit score.

  • Avoid having many unnecessary credit cards (revolving credit) avoid opening many accounts in quick succession
  • Make your payments on time every time!
  • Avoid Unnecessary Loans
  • Avoid defaulting on any loans (Including Home, Auto and Education)
  • Limit Utilization (Below 30% of total revolving credit limits)
  • Stay away from declaring chapter 7 or 13 bankruptcy

 

Following the guidelines above will protect your credit score from damage. As previously stated the higher your credit score is, the more likely you are to be approved for more expensive purchases like an auto loan or mortgage. Although there are many more decisions you can make around your credit, some just won't have an effect.