by Natalia Jones

Created on: March 18, 2010   Last Updated: August 04, 2010

If you want to hamper your ability to get a consumer loan, dash your hopes of ever securing a mortgage, kill all chances of landing a job or even renting an apartment and in some cases jeopardize escalating your relationship to the next level then you really need to lower your credit score. Seriously though, unless you want to end up singing a miserable song like the guy on the FreeCreditReport.com ads you won't want to mess with your credit score. 

Take a look at some of the ways that you may be hurting your credit score and making your financial life much more difficult than it ought to be.

Maxing Out Your Credit Cards

You may think that limits are set so they can be taken full advantage of, but you will be wrong. In fact, the closer you come to maxing out your credit card limits every month, the more damage you do to your credit score. The logic behind this is that those who are keeping score view this type of behavior as an indicator that you are either irresponsible with your finances or you are unable to maintain your lifestyle with the money you make and so you are dependant on credit.

Making Late Payments

Late payments are definitely bad news. When you make your payments late you are sending signals that you are in trouble and this does not go unnoticed.

Missing Payments All Together

Needless to say, missing payments all together is a definite strike against your name. Your credit score will take a nosedive if you skip payments that fall due on loans, credit cards or even regular utility bills.

Transferring Balances From Card to Card

You may think you are clever because you constantly transfer your outstanding balances from higher interest credit cards to no-interest or low-interest cards to take advantage of introductory rates, but this type of behavior is noted as yet another signal that you are unable to pay your bills.

Applying for Multiple Credit Cards

Multiple applications for credit that come in quick succession are read as a sign of desperation and a red flag for more trouble to follow. Incidentally this action in itself causes a drop in your credit score because rating agencies see this as a mark that you are not making responsible financial decisions.

Closing Accounts with Old Cards

Even cancelling old credit cards is a negative thing. This is because the longer your credit history appears to be the higher your score, so if you need to close an account it is better to get rid of a newer card than an old one.

Lots of things damage your credit score so you need to be vigilant to maintain a number that you are comfortable with. Most importantly, be sure to get your free credit reports and check that the information reported is accurate, because errors can also bring down your score unnecessarily.

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