3 mistakes that will tank your credit score

Your credit history is a big deal. Lenders can see you credit score and use that number to decide what kind of loan you’ll be able to get and what interest rate you’ll have to pay. If your credit score is low, you should find some ways to raise it. If your score is good, here are three mistakes you should avoid if you want to keep it that way.

Cosigning a loan

You’re a nice person and you do nice things for people you care about. You should never cosign a loan. EVER. You’ve got to look out for your own personal finances. If the borrower starts missing payments, your credit score will take a hit. The last thing you want to do is have to pay money to keep your credit score up and get absolutely nothing in return.

Closing a credit card account

The first credit card you ever had probably wasn’t a fantastic credit card. You probably got it so you could build credit or in case of emergencies. You may have paid if off and decided to stop using it, but don’t close that account. For one thing, that card has a longer credit history which is good for your credit score. Also, closing the account will lower your amount of credit available which could negatively affect your debt utilization ratio. That’s one action that can damage your credit score in two different ways.

Not catching errors

You should always keep a close eye on your credit score. If you haven’t looked at yours recently, or ever, check out Credit Karma. It’s free and easy-to-use. If you don’t keep an eye on your credit report, you could have your identity stolen and not know it. Even if nothing malicious is happening to you, there could still be inaccuracies. The day you find an error is the day you’ll be super glad you checked.

John Pettit

John Pettit

John Pettit is the Managing Editor at CBInsight.com, The Place For All Things Banking. John manages the content on the site, including current news, editorial, press releases, jobs and ... Web: www.cbinsight.com Details

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