Many people feel intimidated by their credit scores.
Some don’t know what their score is, others aren’t sure how to improve it, and many hold negative beliefs about credit scores in general.
It doesn’t have to be that way.
A credit score can be used to your advantage. A strong credit score can unlock valuable credit card rewards, improve your chances of getting certain jobs, help you qualify for better mortgage terms when buying a home, and open other financial opportunities.
Related article: How Your Credit Score Affects Your Life + Credit Sesame Review
Even better, raising your credit score doesn’t have to be complicated.
That said, it can be surprisingly easy to damage your credit score if you’re not careful.
Here are four common mistakes that may be holding you back from a better credit score.
1. You spend too much on your credit cards.
Every credit card has a credit limit, but that doesn’t mean you should treat the full limit as available spending. A key metric lenders use is credit utilization—how much of your available credit you’re using. As a rule of thumb, aim to keep your utilization below 30% of your total limit. For example, if your card limit is $1,000, try not to carry a balance above $300.
Even if you pay your balance in full each month, going above 30% when your statement is issued can still hurt your score because card issuers report balances to credit bureaus periodically. To avoid that, consider making an extra payment before the statement closing date so your reported balance stays low.
2. You cancel old credit cards.
Length of credit history accounts for a portion of your credit score—FICO attributes about 15% to it. Older accounts help demonstrate a longer track record of credit management, which generally supports a higher score.
If you have older cards that don’t charge an annual fee, think twice before closing them. Keeping them open—and using them occasionally—can preserve your average account age and credit availability. I keep one very-old card active by making a small purchase once a year just to prevent the issuer from closing it for inactivity.
That said, there are valid reasons to close a card. If having credit cards leads you to carry persistent debt, closing accounts may be a sensible choice for your financial health.
3. You pay your bills late.
Payment history is the largest single factor in most credit scoring models—around 35% of your FICO score. Missing payments regularly will damage your score more than almost anything else.
Always pay bills on time. Late payments can trigger interest charges, late fees, and negative marks on your credit report. If you do miss a payment, act quickly: contact the creditor, explain the situation, and request leniency or ask if they will refrain from reporting the late payment. In many cases, if the mistake is a one-time occurrence and you correct it promptly, the creditor may be willing to help.
For example, I once accidentally underpaid my mortgage by a small amount. Because I noticed it immediately and contacted the lender, they waived fees and didn’t report the incident.
Related article: How To Live On One Income
4. You never check your credit report.
When was the last time you reviewed your credit report?
Too many people rarely check theirs, but monitoring your reports is essential. Errors, identity theft, or outdated information can all depress your score if left unchecked.
You are entitled to one free credit report from each major credit bureau every year. Staggering those requests—one bureau every four months—lets you stay more current on your credit records. Regularly reviewing your reports helps you spot mistakes early and dispute inaccuracies before they do lasting harm.
How have you damaged your credit score in the past? Do you have a good credit score now? Why or why not?