-
Peter Dazeley/Getty Images
Don't close old credit card accounts
En español| So, you finally paid off that credit card bill that's been nagging you for ages. Your first inclination may be to say "Good riddance!", cut up the card and close the account. Not so fast. Closing the account can actually lower your credit score. First, you'll have a smaller amount of available credit and you'll be making your credit history with that card go away a lot sooner. Available credit and account history factor in your credit rating. Even if you pay off a credit card, you're usually better off keeping that card open.
1 of 11
-
Istockphoto
Don't max out your cards before a bankruptcy
If someone calls, mails or emails you unsolicited and requests sensitive personal information such as your credit card number or your Social Security number, never divulge it, no matter how nice or legitimate the person sounds. Such requests are often financial scams targeting seniors. Criminals are trying to steal your money or make unauthorized use of your credit and good name. If you ever become the victim of identity theft, report it immediately to your local police department and to the Federal Trade Commission. You can reach the FTC toll-free at 877-ID-THEFT (877-438-4338) or atits website.
2 of 11
- See AlsoPoorest Countries Seek Debt Relief, Citing Costs of Climate ChangeThe very big risks of the Greek debt crisis‘I am more than grateful:’ Millions of Americans over 50 may benefit from Biden’s student loan forgiveness plan | CNN PoliticsStudent Loan Forgiveness Guide and Application Portal
Getty Images
Don't apply for gas cards and department store cards
- 10 common credit mistakes
- Bad spending habits you should break
- 10 ways to cut expenses
3 of 11
-
Getty Images
Don't cosign for someone else's loans
En español| So, you finally paid off that credit card bill that's been nagging you for ages. Your first inclination may be to say "Good riddance!", cut up the card and close the account. Not so fast. Closing the account can actually lower your credit score. First, you'll have a smaller amount of available credit and you'll be making your credit history with that card go away a lot sooner. Available credit and account history factor in your credit rating. Even if you pay off a credit card, you're usually better off keeping that card open.
4 of 11
-
Istockphoto
Don't share your credit card number
En español| So, you finally paid off that credit card bill that's been nagging you for ages. Your first inclination may be to say "Good riddance!", cut up the card and close the account. Not so fast. Closing the account can actually lower your credit score. First, you'll have a smaller amount of available credit and you'll be making your credit history with that card go away a lot sooner. Available credit and account history factor in your credit rating. Even if you pay off a credit card, you're usually better off keeping that card open.
5 of 11
-
Simon Battensby/Getty Images
Don't be pressured into accepting new credit cards
En español| So, you finally paid off that credit card bill that's been nagging you for ages. Your first inclination may be to say "Good riddance!", cut up the card and close the account. Not so fast. Closing the account can actually lower your credit score. First, you'll have a smaller amount of available credit and you'll be making your credit history with that card go away a lot sooner. Available credit and account history factor in your credit rating. Even if you pay off a credit card, you're usually better off keeping that card open.
6 of 11
-
Steve Lewis/Getty Images
Don't ignore the warning signs about credit problems
En español| So, you finally paid off that credit card bill that's been nagging you for ages. Your first inclination may be to say "Good riddance!", cut up the card and close the account. Not so fast. Closing the account can actually lower your credit score. First, you'll have a smaller amount of available credit and you'll be making your credit history with that card go away a lot sooner. Available credit and account history factor in your credit rating. Even if you pay off a credit card, you're usually better off keeping that card open.
7 of 11
-
Steven Puetzer/Getty Images
Don't fall for credit repair schemes
En español| So, you finally paid off that credit card bill that's been nagging you for ages. Your first inclination may be to say "Good riddance!", cut up the card and close the account. Not so fast. Closing the account can actually lower your credit score. First, you'll have a smaller amount of available credit and you'll be making your credit history with that card go away a lot sooner. Available credit and account history factor in your credit rating. Even if you pay off a credit card, you're usually better off keeping that card open.
8 of 11
-
Getty Images
Don't pay your tax bill with a credit card
En español| So, you finally paid off that credit card bill that's been nagging you for ages. Your first inclination may be to say "Good riddance!", cut up the card and close the account. Not so fast. Closing the account can actually lower your credit score. First, you'll have a smaller amount of available credit and you'll be making your credit history with that card go away a lot sooner. Available credit and account history factor in your credit rating. Even if you pay off a credit card, you're usually better off keeping that card open.
9 of 11
-
Walker and Walker/Getty Images
Don't put major expenses on credit just for "rewards."
En español| So, you finally paid off that credit card bill that's been nagging you for ages. Your first inclination may be to say "Good riddance!", cut up the card and close the account. Not so fast. Closing the account can actually lower your credit score. First, you'll have a smaller amount of available credit and you'll be making your credit history with that card go away a lot sooner. Available credit and account history factor in your credit rating. Even if you pay off a credit card, you're usually better off keeping that card open.
10 of 11
-
View More Slideshows
En español| So, you finally paid off that credit card bill that's been nagging you for ages. Your first inclination may be to say "Good riddance!", cut up the card and close the account. Not so fast. Closing the account can actually lower your credit score. First, you'll have a smaller amount of available credit and you'll be making your credit history with that card go away a lot sooner. Available credit and account history factor in your credit rating. Even if you pay off a credit card, you're usually better off keeping that card open.
11 of 11
FAQs
What is the number one credit killing mistake? ›
Mistake 1: Late payments.
How can credit hurt you financially? ›If you have bad credit, you might have more trouble taking out a credit card, car loan or mortgage — and if you do get accepted for a credit card or loan, you can expect to pay higher interest rates. A FICO score of less than 669 would be considered a fair score and one below 579 is rated a poor score.
What is the single worst thing you can do to your credit score? ›Paying late
Something that is really easy to do, but can really hurt your credit rating is to make late payments. It might seem harmless to pay off your card a couple of days late, but it can make a big impact.
1. Payment History: 35% Making debt payments on time every month benefits your credit scores more than any other single factor—and just one payment made 30 days late can do significant harm to your scores. An account sent to collections, a foreclosure or a bankruptcy can have even deeper, longer-lasting consequences.
What not to say to a credit card company? ›Don't Lie About Your Credit Card History
Customer service representatives can easily pull up your credit card history while you're on the phone, so there is no use in bending the truth.
The factors that determine your credit score are called The Three C's of Credit – Character, Capital and Capacity.
What are the six C's of bad credit? ›To accurately find out whether the business qualifies for the loan, banks generally refer to the six “C's” of credit: character, capacity, capital, collateral, conditions and credit score.