A strong credit score can open doors to better loan rates, easier approvals, and more financial flexibility. But just like ignoring a creaky floorboard in an old house, neglecting your credit can lead to problems that don’t go away on their own. Some mistakes have lasting effects, and if you repeat them, they can come back to haunt you when you need credit the most.
Here are five habits that can cast a long shadow over your credit score:
1. Missing Payments
Even one late payment can leave a lasting mark. Payment history is the single biggest factor in your credit rating, so pay at least the minimum due every month.
2. Carrying High Balances
Maxing out your credit cards can pull your score down quickly. Aim to keep your credit utilization (the amount you owe compared to your limit) below 30%.
3. Closing Old Accounts
It might feel responsible to shut down unused cards, but your oldest accounts help build a longer credit history. Unless the card has costly fees, it's often better to leave it open.
4. Applying for Too Much Credit at Once
Every application triggers a hard inquiry, which can temporarily lower your score. A few inquiries are normal, but applying for multiple cards or loans at once makes lenders wary.
5. Ignoring Your Credit Report
Your report is the best way to spot errors or fraud in your name. Checking it regularly helps you catch issues before they damage your score.
Bad credit habits don't have to follow you forever. With consistent on-time payments, smart use of credit, and regular monitoring, you can rebuild your score and keep your financial future secure.
Want more credit management tips?
- Learn about zombie debt and how to handle it.
- Find out how to spot and avoid predatory lending.
- Discover our tips on how to pay down debt faster.