5 Things that are Killing Your Credit Score

credit cards stack on white

It is important to know your credit score before trying to apply for a loan or new credit


In today’s post-recession economy, many individuals are confused about what can hurt or help their credit score. It can be frustrating to decide on a major purchase only to discover that your credit score is not high enough to be accepted for a loan. In many cases, people are unintentionally hurting their credit score. Here are 5 common mistakes that can drive that three digit number down:

  1. Paying your bills late. While a couple late payments won’t cause much damage, making a habit of overdue credit card and loan notices can work against you.
  2. Not paying the minimum amount required. A creditor will typically report this account as past due at some point. This can result in late fees and add-on interest charges.
  3. Keeping debt levels too high. When you owe a lot on a card or max it out each month, creditors begin to question your ability to pay. They may even tack on an extra high interest rate to compensate for the high risk of your account.
  4. Owning too many credit cards. Department store discounts that are offered with the store’s credit card may seem tempting but if you don’t use the card, potential creditors begin to worry that you won’t be able to repay a new obligation when you use so much credit.
  5. Not alerting creditors if you have moved or changed names. This minor mistake can cause inaccuracies in the credit that you have worked to build. If bills continue to be delivered to a previous residence, you may see them late or never at all, resulting in late payments.

Many credit mistakes are easy to make and tough to reverse. It is no wonder that credit reports can be so confusing. If you want to commit to bumping up your credit score, work hard to make regular payments each month. This is the easiest and fastest way to get on the road to financial security.
If you are struggling to get out of credit card debt or saving for a future investment, try one of Milledgeville State Bank’s online financial calculators. These simple tools will help you measure how much you need to save in order to reach your goals.