5 Credit Mistakes That Are Killing Your Score (And How To Fix Them)
Your credit score affects everything — from getting approved for loans and credit cards to renting an apartment
or even landing certain jobs.
But most people are unknowingly sabotaging their credit every day. Let’s break down the top five mistakes and what you can do to fix them.
🚫 Mistake #1: High Credit Utilization
When you’re using more than 30% of your credit card limit, lenders see it as a red flag — even if you’re paying on time. This alone can cause your score to drop significantly.
✅ Fix:
Keep your credit usage under 10–20%. If that’s not possible right away, request a credit limit increase or pay down balances before your statement closes.
🚫 Mistake #2: Late Payments
Payment history makes up 35% of your score. Just one late payment can drop your score by 50–100 points, and the impact lingers for years.
✅ Fix:
Set up autopay or reminders. If a payment was late by mistake, dispute it — especially if you’ve had a clean history with that lender.
🚫 Mistake #3: Too Many Hard Inquiries
Every time you apply for credit, a hard inquiry hits your report. Too many of these in a short time signals desperation and hurts your score.
✅ Fix:
Be strategic with your applications. Only apply when you’re pre-qualified or have a strong chance of approval.
🚫 Mistake #4: Ignoring Old Collections
Even if a collection account is a few years old, it still damages your credit. Paying it won’t always help unless it’s removed from your report.
✅ Fix:
Dispute outdated or inaccurate accounts. You can also negotiate with creditors for a “pay for delete” agreement.
🚫 Mistake #5: Not Monitoring Your Report
If you’re not checking your report, you won’t catch errors, fraud, or unauthorized accounts that are hurting your score.
✅ Fix:
Use free tools like Credit Karma for weekly updates, or sign up for a more detailed service like IdentityIQ or SmartCredit.
Credit is a game — and most people are playing blind. But once you know the rules, it’s not hard to start winning. If you’re tired of getting denied or stuck at the same score month after month, we can help. Book a strategy call and let’s clean up your credit the right way.
