The Worst Things That You Can Do To Your Credit Score
Maintaining a good credit rating is more important than ever in this economy, because loan standards have tightened up considerably. A credit rating that would have been considered good even a few years ago is now likely not enough to get you approved for a home loan or student loan or car loan.
And if your credit rating is below the mid-700s, you are likely to pay higher interest rates on all of your loans.
Here are some things that will seriously harm your credit:
Making a late payment. It is a good idea to send your bills off at least a week before they are due; ten days if possible. One single late payment can drop your credit score by 100 points.
Charging all of your credit cards to the max. Or even just carrying too much debt on them. Do not charge to the limit; try to keep the amount that you have charged to no more than 30 or 40 percent of your credit card balance.
Applying for new lines of credit: This will lower your credit score.
Declaring bankruptcy. This will play havoc with your credit scores for up to 10 years. It is an absolute last resort.
Applying for high interest, unsecured loans.
Closing down old lines of credit. If you must shut down a line of credit do it on your newer credit cards.
Applying for department store credit cards.