Common Credit Mistakes to Avoid

Hey there,

When it comes to credit, a small mistake can have a big impact on your financial future. But don’t worry—I’ve got you covered! Let’s go over some of the most common credit mistakes so you can avoid them and stay on the right track.

🚨 1. Paying Bills Late

Even one missed or late payment can cause your score to drop. Set up automatic payments or reminders to keep yourself on schedule.

💳 2. Maxing Out Credit Cards

Using too much of your credit limit (also called high utilization) makes lenders nervous. Try to keep your usage below 30%, but under 10% is even better.

📉 3. Closing Old Credit Accounts

It might seem like a good idea, but closing old accounts can shorten your credit history and impact your score. Unless there’s an annual fee, keep them open!

🏦 4. Applying for Too Much Credit at Once

Each time you apply for a new card or loan, a hard inquiry gets added to your report. Too many in a short time can lower your score and make you look risky.

🕵🏽‍♂️ 5. Not Checking Your Credit Report

Errors happen all the time—and they could be costing you points! Check your credit report regularly to make sure everything is accurate.

💸 6. Ignoring Collections & Past-Due Accounts

Leaving old debts unpaid won’t make them disappear. Address them ASAP—either by negotiating, disputing, or setting up a payment plan.

Final Thoughts

Your credit score is a powerful tool. Avoid these mistakes, and you’ll be well on your way to financial success! If you need help getting back on track, I’m here to help.

Committed to your financial success,

Alex at Greenfield Financial Solutions