7 Small Mistakes That Can Do Big Harm to Your Credit Score

by TheStreet.com Mar 6th 2012 3:15PM
Updated Mar 6th 2012 4:51PM
Credit cardBy Jeanine Skowronski

Most consumers understand that bankruptcy or foreclosure is going to tank their credit score and then negatively impact it for the next seven years, but there are plenty of other small mistakes a consumer can make that can turn a good score of 750 or higher into a mediocre 680.

Here are some of the more common mistakes to steer clear of, plus tips on how to avoid them in the future.






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22 Comments

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vlady1000

My wife and I did a couple of these sins (1. about max out a card to get 10% off a $10,000 purchase and left the full balance on it for 6 monthsas it was interest free and 2. opened a couple more card for good promo $$). Our score dropped about 20 points. But it went right back up in no time after that. BTW-you do not have to have debt to have a high score, as many believe. I always pay all cards off in full every month (expect for the 6 months mentioned above), never ever had a car loan, no student loans, only mortgages and paid many mortgages off many years early, etc and our score is extremely high. This article is accurate, but maybe makes a little bigger deal out of it than it really is for these smaller things.

March 08 2012 at 7:31 PM Report abuse rate up rate down Reply
ronp304

lol lol lol lol lol Ya know what?... who the hell are these bastards.....I got the best idea....use cash or barter live within means...set up a Credit union even in your neighborhood that you could borrow in emergency ...credit score.....do you want these people to have that much control over you? Just wait till Obama care...you will have a health score....and that number will determine wether services are given...or a pill.........oh im not joking find out for yourselves cmon its we the people not we the eunocks. Dont let em have this power over you...we are the land of the free even though our freedoms and persuit of happiness are being taken away chip by chip day after day in the guiess of giving you something free....well guess what there is no free!!!! lol lol lol lol lol lol lol lol

March 08 2012 at 8:48 AM Report abuse +2 rate up rate down Reply
ronp304

lol lol lol lol lol Ya know what?... who the hell are these bastards.....I got the best idea....use cash or barter live within means...set up a Credit union even in your neighborhood that you could borrow in emergency ...credit score.....do you want these people to have that much control over you? Just wait till Obama care...you will have a health score....and that number will determine wether services are given...or a pill.........oh im not joking find out for yourselves cmon its we the people not we the eunocks. Dont let em have this power over you...we are the land of the free even though our freedoms and persuit of happiness are being taken away chip by chip day after day in the guiess of giving you something free....well guess what there is no free!!!! lol lol lol lol lol lol lol lol

March 08 2012 at 8:48 AM Report abuse +1 rate up rate down Reply
acavet

Government needs to stop worrying about what kind of food we eat and wether we wear our seatbelts. Instead it needs to protect us from big business.

Credit scores are actually meant to punish conscientious consumers who do not maintain a certain amount of credit at all times.

Here are some examples: Close unneeded or unused accounts-score goes down. Pay off big loans-score goes down. Purposely reduce your available credit-score goes down.

One of the biggest drops in my credit score came when I sold my home and paid off my home loan in good standing. Another big drop was when I paid my car off early. What kind of sense does this make!

Another one that I really love is the how numerous un- requested credit checks negatively impacts your account. Something that is completely beyond your control these days.

Just try and find out what it takes to have a perfect credit score, no one can tell you!

What we need is legislation the clearly defines what impacts your credit score and does not punish consumers for early payoffs and closing unneeded accounts.

March 08 2012 at 12:46 AM Report abuse +1 rate up rate down Reply
Dereck

Do yourself a "HUGE FAVOR" and carefully read this:

The 21st Century Act: Final Amendments to Regulation CC Section:
"Prohibits" reimbursement of Credit, Loan, and Finance Balances to a "Bank Entity" leaving only "Nonbank Consumers" able to receive reimbursement, as specified on Pages 85 and 86.

The 21st Century Act states on pg. 85 and 86 that "Only Nonbank Consumers can suffer losses and File for
Re-credit or Re-claim on any Accounts under the Federal Reserve System" also “Any Second or Third Party Presenters utilizing a Banks Documentation, Contracts and/or Agreements to seek Claims shall be considered to be that Bank under the Rules and Regulations”, the Expanded Definitions also includes Credit Cards and Home Equity Lines of Credit.
Also on Pages 100 and 101 "In any Financial Claims the Indemifying Bank (Parent Bank) must be Identified".

(Left-Click to Search Link)
21st Century Act: Final Amendments to Regulation CC http://www.federalreserve.gov/boarddocs/press/bcreg/2004/20040726/attachment.pdf

This Federal Law signed January 1, 2006 makes it "Fraudulent" and therefore "Illegal" for the 3 Major Personal Credit Reporting Agencies: Equifax, Experian, and TrasUnion to allow the Banks and the Banks "Third Party Presenters" to place any claim of "Negative" or "Potentially Negative" Accounts on your Personal Credit Based upon the fact that they have no "Legal Grounds or Claim" to the Money.

This is an "Unfair Practice" that diminishes our Financial ability to support ourselves and adversely affects our ability to gain work in many areas which breaks "Antitrust Laws".

These Rules also back claims of: "Aiding and Abetting" Racketeering and Extortion (of Finance Accounts and Personal Credit Reports), Pandering (of Credit and Loan Accounts, and Conspiracy to wit), Theft, Fraud, Federal Mail Fraud, and Telephone Harassment. Also "Threatening of the U.S. Financial Infrastructure", which is a "Capital Crime".

In order to engage the Federal Trade Commission to act against this injustice we must File many Claims, as these Reports must be Filed by a large number of people in order for the Federal Trade Commission to pursue
"Legal Action".

(Left -Click to engage Email Address)

antitrust@ftc.gov

This is way easier than "Occupying Wall Street"!

March 07 2012 at 8:47 PM Report abuse rate up rate down Reply
Dereck

Do yourself a "HUGE FAVOR" and carefully read this:

The 21st Century Act: Final Amendments to Regulation CC Section:
"Prohibits" reimbursement of Credit, Loan, and Finance Balances to a "Bank Entity" leaving only "Nonbank Consumers" able to receive reimbursement, as specified on Pages 85 and 86.

The 21st Century Act states on pg. 85 and 86 that "Only Nonbank Consumers can suffer losses and File for
Re-credit or Re-claim on any Accounts under the Federal Reserve System" also “Any Second or Third Party Presenters utilizing a Banks Documentation, Contracts and/or Agreements to seek Claims shall be considered to be that Bank under the Rules and Regulations”, the Expanded Definitions also includes Credit Cards and Home Equity Lines of Credit.
Also on Pages 100 and 101 "In any Financial Claims the Indemifying Bank (Parent Bank) must be Identified".

(Left-Click to Search Link)
21st Century Act: Final Amendments to Regulation CC http://www.federalreserve.gov/boarddocs/press/bcreg/2004/20040726/attachment.pdf

This Federal Law signed January 1, 2006 makes it "Fraudulent" and therefore "Illegal" for the 3 Major Personal Credit Reporting Agencies: Equifax, Experian, and TrasUnion to allow the Banks and the Banks "Third Party Presenters" to place any claim of "Negative" or "Potentially Negative" Accounts on your Personal Credit Based upon the fact that they have no "Legal Grounds or Claim" to the Money.

This is an "Unfair Practice" that diminishes our Financial ability to support ourselves and adversely affects our ability to gain work in many areas which breaks "Antitrust Laws".

These Rules also back claims of: "Aiding and Abetting" Racketeering and Extortion (of Finance Accounts and Personal Credit Reports), Pandering (of Credit and Loan Accounts, and Conspiracy to wit), Theft, Fraud, Federal Mail Fraud, and Telephone Harassment. Also "Threatening of the U.S. Financial Infrastructure", which is a "Capital Crime".

In order to engage the Federal Trade Commission to act against this injustice we must File many Claims, as these Reports must be Filed by a large number of people in order for the Federal Trade Commission to pursue
"Legal Action".

(Left -Click to engage Email Address)

antitrust@ftc.gov

This is way easier than "Occupying Wall Street"!

March 07 2012 at 8:45 PM Report abuse rate up rate down Reply
DINESH

I think I did the mistake mentioned in #1opening too many accounts at once ..... thanks for the good tips

March 07 2012 at 5:08 PM Report abuse rate up rate down Reply
wolfiegd

If a camel farts in Tasmania your credit score is downgraded. What a bunch of BS. This is what happens when you let the banks and credit companies dictate every single event for us. And the republicans whine there doesn't need to be any oversight in banking or the financial industry. Yea, right.

March 07 2012 at 5:00 PM Report abuse rate up rate down Reply
Abdul

1400 hundred years ago prophit mohammed said intrest is a curse stay away from that it is 100% true there are banks running in this world without intrest

March 07 2012 at 2:30 PM Report abuse rate up rate down Reply
1 reply to Abdul's comment
rainl0ver7

Before mohammed, Abdul, Jesus forced the money lenders out of the temple.

March 07 2012 at 7:51 PM Report abuse rate up rate down Reply
mamc707

Within the past 10 years we the public were NOT told do not close old accounts so, we did now we are told that is was not good for our scores.. THEY SHOULD MAKE UP THERE MINDS AND STOP PULLING OUR STRINGS.

Also most of us don't know that Experian or Equifax will no longer give you your FICO Score wher as before you could get all 3 now only 2.

March 07 2012 at 1:47 PM Report abuse rate up rate down Reply