How to Fix My Poor Credit Score: Common Mistakes to Avoid

Did you know that nearly one in five Americans has a mistake on their credit report? This can significantly affect your credit score. If you’re asking yourself, “How can I improve my bad credit score?” or wondering “How to fix my poor credit score,” understanding the common mistakes people make is important. Avoiding these mistakes can help you on your path to a better credit score. 

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Ignoring Your Credit Report 

One of the biggest mistakes people make is ignoring their credit report. Your credit report contains vital information about your credit history. It shows your payment history, the amount you owe, and any missed payments. If you don’t check your report regularly, you might miss errors that could hurt your score. 

Tip: Obtain your credit report annually, dispute inaccuracies with the credit bureau, and correcting errors can quickly boost your score. 

Making Late Payments 

Another common mistake is making late payments. Your payment history is a significant factor in your credit score. Late payments can stay on your record for up to seven years, damaging your score in the process. 

Tip: Set payment reminders or automate them, and pay any missed bills promptly to improve your credit score. 

Using Too Much Credit 

Maxing out your credit cards is a mistake that many people make. When you use too much of your available credit, it can lower your credit score. Experts recommend keeping your credit utilization below 30%. 

Tip: Track your spending, pay off monthly balances, and if you struggle to stay under 30%, request a credit limit increase or use multiple cards. 

Closing Old Accounts 

Some people think closing old credit accounts will help their score. However, this can actually hurt your credit. Older accounts show that you have a long credit history, which is good for your score. 

Tip: Keep old accounts open, as they help maintain your credit history and improve your score over time. 

Applying for Too Many Loans at Once 

Applying for multiple loans or credit cards in a short period can lower your credit score. Each application results in a hard inquiry on your credit report.  

Tip: Only apply for credit when necessary and shop for loans within a short time frame to minimize the impact of hard inquiries on your score. 

Wrap-up  

Fixing your credit score is achievable if you avoid common mistakes. Regularly check your credit report, make timely payments, manage credit usage, keep old accounts open, and be cautious with loan applications to improve your score. If you’re asking yourself, “How can I improve my bad credit score?” or “How do I fix my poor credit score?” Remember that avoiding these pitfalls is essential. At the armscorp, we understand the challenges you face and are here to provide tailored credit solutions that empower you on your journey to financial success. For more contact us today.