7 Common Credit Mistakes That Can Lower Your Score (and How to Avoid Them)
Building good credit takes time — but it can also be easily damaged by a few small mistakes. Many people unknowingly hurt their credit scores just by misunderstanding how credit works.
The good news? Once you know what to watch for, it's easy to avoid these slip-ups and keep your score heading in the right direction.
Let's look at the 7 most common credit mistakes — and how to fix them before they cause lasting damage.
1Missing or Late Payments
Your payment history is the biggest factor in your credit score. Even one late payment can lower your score by dozens of points.
How to fix it:
- • Set up automatic payments or reminders
- • If you miss a payment, catch up quickly — the longer it goes unpaid, the more it hurts your score
2Using Too Much of Your Credit Limit
Using over 30% of your total available credit makes lenders think you're relying too heavily on debt.
How to fix it:
- • Keep balances below 30% of your credit limit (below 10% is ideal)
- • Make multiple small payments throughout the month if possible
3Closing Old Credit Accounts
It might seem smart to close cards you don't use, but doing so can shorten your credit history and increase your utilization rate.
How to fix it:
- • Keep old accounts open unless they have annual fees
- • Use them occasionally to keep them active and help your score
4Applying for Too Many Credit Cards at Once
Each new credit application creates a "hard inquiry" on your report, which can lower your score slightly — and several inquiries in a short time can look risky to lenders.
How to fix it:
- • Space out new applications by at least a few months
- • Research and compare cards before applying, so you only apply for the best fit
5Ignoring Your Credit Report
Errors happen — from outdated information to accounts that aren't yours. If you don't check your report, these mistakes can hurt your score for years.
How to fix it:
- • Check your report from Equifax, Experian, and TransUnion regularly (you can get a free copy each year)
- • Dispute any errors immediately through the credit bureau's website
6Only Paying the Minimum
Making minimum payments might keep your account in good standing, but it leaves you with growing interest and a high balance that hurts your utilization.
How to fix it:
- • Pay more than the minimum whenever possible
- • Even an extra $20–$50 per month helps you pay off debt faster and improves your credit ratio
7Not Having Any Credit at All
Many people avoid credit altogether out of fear of debt, but having no credit history makes it harder to get approved for loans or even rent an apartment.
How to fix it:
- • Start small with a secured credit card or a credit-builder loan
- • Use it responsibly and pay in full every month
Final Thoughts
Your credit score isn't just a number — it's a reflection of your financial habits.
By avoiding these common mistakes, paying on time, and keeping your balances low, you'll steadily build a score that opens doors to better loan rates, more approvals, and long-term financial security.
At Credit Card Pathway, we help you understand credit, compare cards, and make smart financial choices that actually work in the real world.
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