HOW TO: Destroy Your Credit Score
Posted on October 11, 2007
There are hundreds of articles out there detailing ways to improve your credit score. Damaging your credit score is something most people do not have a problem with. Analyzing the reasons for killing a credit score is important in order to fix the problem. Here are six ways to kill your credit score:
- Be a big spender at the wrong time. Timing can be everything with money. For example, cashing out your retirement fund to early and risk paying big penalties thus giving up future earnings.
- Forget about payments. Stay organized and on top of what is due and at what time. This is a credit killer everyone can avoid just by paying the minimum amount each month.
- Be too thin on open credit. Part of the credit score is calculated on how much open credit you have. If you have only one $500 limit credit card and it is maxed out, that is far worse than having two credit cards with $5000 combined limit and a $500 balance. Ensure you have some credit that is not used.
- Be too eager. Let your money grow and mature before making the big indulgences.
- Closing unused accounts making your balance closer to your limit. Similar to number three in that it is important to have a portion of credit that is not used. Consider cutting your card up, but holding off on closing the account.
- Be too care free. Not everyone enjoys mulling over finances for hours each day. But attempt to give your finances at least a portion of time each week to ensure you understand where everything is going and what is coming due.
Related Posts
Checking Your Significant Other’s Credit ScoreCarnival of Personal Finance: 113th EditionFour Steps to an Awesome Credit Score» Filed Under Credit Repair, Credit Report, Credit History
Comments
One Response to “HOW TO: Destroy Your Credit Score”
Leave a Reply
Just be lazy about paying bills is all it takes. I think most people get into trouble simply because they are not very organized…