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credit score, when in fact it's seriously hurting you, because the limit is being improperly reported.

THIRD MAJOR SCORING FACTOR: LENGTH OF CREDIT HISTORY
This one is simple: The longer your accounts have been open, the better your score. There isn't much to say about this, except that if you keep your accounts open (meaning, don't cancel your credit cards) your score will slowly go up. Conversely, if you open a new account, your score will likely drop.

So pick your cards and stick to them. If you have old cards that you don't use anymore, don't cancel them. And avoid the temptation to open new accounts, even if they offer great deals or introductory rates. This includes store credit cards. So the next time a Gap cashier says, "Open an account today, and get 10% off this purchase!" What will you say? "No thanks."

FOURTH MAJOR SCORING FACTOR: CREDIT INQUIRIES
Every time a creditor checks your credit, your score drops. Creditors check your credit every time you apply for a credit card, a mortgage, an auto loan, or just about any other kind of loan. Landlords often check renters' credit, too, when renters apply. Rental car companies also check your credit if you pay for a rental car with a debit card (and they charge you a fee to do so!).

Some of these are easily avoidable. Once again, just say "no" to the Gap cashier offering you 10% off. Don't apply for more credit cards - stick to the ones you have already. And use a credit card to pay for your rental car.

Some are less avoidable. If you want an auto loan or mortgage, a credit check is inevitable. You can still reduce the damage by first deciding which lender you want to use, then only applying for a loan from that lender, instead of shopping around and applying for loans from many different lenders. This is yet another aspect of credit scoring that is stupid and broken. You would think that it would be smarter to shop around, right? Well, it ends up hurting you, because the credit system is stupid and dings you for every inquiry.

Okay, so the system isn't completely stupid. If you make a flurry of mortgage or auto loan applications all within a short timeframe (usually a 30-day window), then a month or so later the credit bureaus will group all of those credit checks into a single inquiry. They know you need to shop around, so they don't count it against you. The problem, however, is that it takes a while (as much as three months) for them to do this. Meanwhile, your score is dropping with every inquiry... right

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