What Lowers Your Credit Score

As important as it is to go over and repeat the wise decisions that lead to establishing a credit history and building your credit score, it's also important to remember the two dumbest things you can do to lower your credit score. The first one ought to go without saying, but it bears repeating--make your payments! In a perfect world, you will have $10,000 of revolving credit access each month, only spend $1,000 or less on your credit card each month, and then pay it off promptly when the bill arrives. But unfortunately, this is a far-off dream for too many people. Life happens, and it's easy to let debts rack up when unexpected expenses enter your life. But I cannot stress how important it is to regularly be making payments on your card. Nothing, with the exception of bankruptcy, can quickly wreak havoc on your credit-worthiness reputation like not making payments on your credit card. The only thing faster than a light year is the amount of time it takes a credit card company to report to an agency that you missed a payment.

The other dumb thing you can do is acquire a hodge podge of credit cards from a bunch of different companies--all of which you use--and then make minimum payments on. Not only does this cripple you financially, ensuring that you ship off a portion of your hard-earned wealth to the credit agencies each month, but it also lowers your credit scores. Credit-card companies don't like to see you putting $1,000 on that Kitty Litter card, that Clock Magic account, or whatever other odd-ball account you create. But these are just two of the biggest errors you can make. If you want to check out a great article on the types of things that can lower your credit score, be sure to check out this post by the guys over at One Money Design by clicking here: http://www.onemoneydesign.com/what-can-affect-your-credit-score/ .