3 Deadly Credit Fixing Mistakes That Will Sabotage Your Credit Score
Fixing your credit is about two things; knowing what to do and staying away from the critical mistakes that will ruin your credit. This article discusses the biggest credit fixing mistakes to stay away from.
The credit fixing process is very delicate since you are trying to do anything in your power to boost your credit scores. However, there are 3 critical things that will completely destroy your credit score and set you back much further than where you started.
With this in mind, here are the 3 deadly credit fixing mistakes that will sabotage your credit score.
Mistake 1 - Closing Your Credit Card Accounts
Many people in the credit fixing process are under the impression that closing their credit card accounts will help them boost their credit scores. That couldn't be further from the truth.
The minute you close your accounts you lose both a trade line on your credit and the total amount of years of credit you had with that account.
Mistake 2 - Not Keeping Proper Track Of Your Bills
This is a big one because once you skip a payment and the account goes over 30 days past due, you could expect the credit reporting agencies to give you a 30 day late on your credit report.
The truth is it doesn't matter if you lost, misplaced, or never received the bill - it is your responsibility to pay that account and failure to do so will definitely hurt your credit score. When you are trying to fix your credit, it is a must to keep track of your bills to make sure they are paid on time.
Mistake 3 - Applying And Acquiring Many New Accounts At Once
You may be asking yourself, "Isn't it important to have credit to get a good credit score?" That's true, but if you get it all at once, a few things happen. First, your credit score will drop because of the many credit inquiries that were made.
The second and more critical effects of acquiring new credit all at once, especially when you are in the credit fixing process, is that the age of your credit will dramatically decrease.
Let's say you had 3 credit cards that you've had for the last 3 years. The average age of your credit is 3 years. However, let's say you just received 3 new cards this month; the average age of your credit has just dropped to one and a half years. The length of time that you've had credit is very important to your credit fixing process and credit scoring overall.
So there you have them, the 3 deadly credit fixing mistakes that will sabotage your credit score. Don't fall into these traps or your credit score will be damaged and it will take you much longer to get everything back in order.
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