Free Credit Report Credit Score Things that will Ruin your Credit Score

Maintaining a good credit score is very important and will make your life much easier. When you have a good credit score you are offered lower interest rates and it will save you a lot of money. To make sure your credit score does not go down avoid the following things.

1) Make Late Payments- Do not miss credit card payments, this is the number one way to ruin your credit score. Late payments will stay on your credit report for 7 years. Late payments are 35 % of your credit score and the most important thing to stay on top of.

2) Max Out Your Credit Cards- The second way to ruin your credit score is to max out your credit cards. Debt to credit ratio is 30% of your credit score. Using more than 20-30% of your available credit can lower your score.

3) Close Old Credit Card Accounts- The length of your credit history effects your credit score. The longer credit history you have the more points you receive in this category. So even if you are not using an older account keep it open because 1) it will lengthen your credit history and 2) it will give you more available credit.

4) Apply for A lot Of Credit Cards At Once- Every time you apply for a credit card it puts a hard inquiry on your account. Having too many hard inquires on your credit report is not good.

5) Having Only One Kind Of Credit- It is good for your credit score if you have a different mix of credit. If you only have credit cards this is not going to be a strong area for your credit. The credit bureaus want to see credit cards, auto loans, home loans, etc.

6) Let An Account Go Into Collections- Having an account go into collections will severely hurt your credit score for 7 years.

7) Declaring Bankruptcy- Try everything you can to avoid bankruptcy.

Having a good credit score is so important and can be achieved by almost anyone. Avoiding the above things can help you keep your score up. If you do not take the time to understand what makes up your credit report and credit score it will never improve. Once you realize what matters in credit you can begin to improve it yourself. It may take time but it is definitely worth it. Having a good credit score will make your life a lot easier and save you money too!