5 mistakes that can impact your credit score

We all aim to have a healthy credit score. It helps us to secure loans, get better interest rates, and even improve our chances of renting an apartment or getting a job. However, certain mistakes can negatively impact your credit score without you even realising it. 

Here are five common mistakes to avoid to keep your credit score looking great: 

Failing to pay bills or make repayments

Most people are aware that if you don’t pay your bills on time or fail to make scheduled repayments, it can seriously damage your credit score. Late payments are often reported to credit companies, and even a single missed payment can stay on your credit report for a couple of years. 

Consistently paying your bills on time is one of the simplest and most effective ways to maintain a healthy credit score. To avoid missing payments, consider setting up automatic payments or reminders to ensure you stay on top of your financial obligations.

Making multiple loan or credit card applications

Whether it’s a home loan, personal loan or credit card, making multiple applications can affect your credit score. Your credit score is based on your credit report, which shows all the different credit applications you’ve made. Multiple applications will lower your score – and result in a ‘please explain’ from lenders.

Submitting multiple applications may signal to lenders that you’ve been declined for finance, creating uncertainty for them about extending credit to you.

Avoiding credit altogether

It might seem a little counterintuitive, but avoiding any kind of credit altogether can actually hurt your credit score. If you lack a history of repayments your credit score will be lower and lenders may perceive you as a higher risk when considering extending credit to you.

Ignoring your credit score

You might think ignorance is bliss, but ignoring your credit score can be a big mistake. At Fix My Credit, we advocate for proactive management of your credit score, as it can provide valuable insights and benefits in the long term. It’s crucial to regularly monitor your credit score to stay informed about your financial health and take necessary steps to maintain or improve it.

Find out ‘How to fix your credit score‘ in our recent blog article. 

Not seeking professional help

If you’re feeling overwhelmed with bad debt and can’t get your head around how to fix your credit score, it’s time to consult the professionals. Credit repair companies, like Fix My Credit, work on your behalf to fix your credit. 

At Fix My Credit, we specialise in credit restoration services to improve your credit opportunities and foster a positive credit history, eliminating stress and boosting credit scores. We can negotiate with debt collectors and implement strategies to restore credit, ultimately improving your overall financial well-being. With help from us, you can ensure a smoother journey toward a brighter financial future, avoiding the challenges of navigating credit score improvement alone.

Our comprehensive credit repair services include resolving debt issues, debt negotiation, clearing defaults, court judgments, and other adverse records from your credit history. We also provide guidance in securing finance offering support that is tailored to your unique circumstances. 

Curious about your credit health? Contact us for a free credit health check!

With Fix My Credit by your side, you can confidently take steps towards financial stability and a healthier credit score.