5 Sneaky Ways You're Wrecking Your Credit Score

By

CANCELING A CREDIT CARD.

We are often led to believe that taking a pair of scissors and snipping that charge monster to shreds is a good thing. But dont cut up those old cards so quickly. Your credit score takes into account credit history. Get rid of an old standby in your wallet and you could erase all those years you were an excellent bill payer.
mathieukor

USING MORE THAN 30% OF YOUR LIMIT.

Lets say your credit limit is $5,000, and last month you charged $4,500. When the bill came around, you paid it off in full. Good, right? Wrong. Maxing out your credit card even if you can afford to only stands to hurt your credit score. Use just 30 percent of your credit card limit to boost your credit score.
Mark Gabrenya

CONSOLIDATING YOUR ACCOUNTS.

So youre considering transferring all your credit card balances to one card so youre only dealing with one bill every month. It sounds sensible, right? A big no-no, according to the keepers of the credit score. Think of it this way: One big balance looks a whole lot worse than multiple low balances. Appearances are everything.
Deejpilot

ACCEPTING CREDIT LINE INCREASES.

Being the responsible, on-time bill-payer that you are, your credit card company rewards you by upping your credit line. This isnt necessarily a bad thing, but remember how much you can afford to reasonably charge. Resist the urge to spend more or risk being unable to meet your new minimum payments.
John Rodriguez

NOT ASKING FOR WHAT YOU WANT.

Dont accept everything your credit card company offers as written in stone. If you dont want that credit line increase, ask them to reduce it back to your old one. Had one late payment? If your record is squeaky clean, ask them nicely to remove the blemish from your credit history (which, remember, could cost you up to 100 points on your credit score). They could say no, but they could very well say yes because they value you as a customer. Ask anyway. Your credit score will thank you.
Suprijono Suharjoto
  • 0
    SHARES