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Common Credit Score Mistakes

Has Bad Luck or Bad Habits Caused Your Credit Score to Drop?

Here at Credit Absolute we’ve helped our fair share of clients who have just been dealt a bad hand and everything went bad at once, destroying their credit score.

One of the more extreme case was with one of our clients who had been laid off during the recent recession. This caused him get behind on car and mortgage payments for several months before finally going into foreclosure, having his car repossessed, and maxed out credit cards.  This left him drowning in debt and when he finally found new employment, the previous lenders began garnishing his wages, making it nearly impossible to pay his current bills, let alone pay off old debt. He was then forced to file bankruptcy and is now working to rebuild his credit after years of bad luck ruined his credit.

There are definitely situations like this that may be out of your control and your bad credit score may just be the result of bad luck, but in most cases it has more to do with poor credit habits and common credit mistakes. While derogatory marks on your credit report do eventually fall off, it does take awhile. So it’s important to make sure you avoid these common mistakes.

Common Credit Score Mistakes That Can Kill Your Credit Score

While some unforeseen circumstances may be unavoidable, there are quite a few different things that can negatively affect your credit score and should be avoided whenever possible. Here are a few common mistakes that people with low credit scores tend to make:

  • You Close Old Credit Card Accounts

A large part of your credit score is determined by your credit history and by keeping your old credit cards can help improve your credit score. You will still need to occasionally use those cards to keep them “active” but you definitely don’t want to close out old cards.

  • You Take Too Long To Shop For The Best Rate

This is a very common mistake among new home and car buyers who have been advised to shop around for the best rates. While it is definitely recommended to search around for the best rates when buying a car or home, you want to avoid having your credit checked numerous times by shopping too long for a good rate. One tip to help avoid this mistake is by working with a mortgage broker; they can run your credit once but will still have access to numerous mortgage companies in order to find you the best rate without having to re-run your credit for every lender.

  • You Don’t Use Credit, Even Though You Have Access To It

Sadly, this happens far too often and, while it may not hurt your credit, it is a lost opportunity that could be helping you maintain a good credit score. If you have credit cards that you’ve perhaps had for years and no longer use, you’re missing out on a great opportunity to improve your credit. Credit that isn’t being used won’t help your credit score so make sure that you’re using your credit card at least a few times a year to ensure it stays “active” and continues to benefit your score.

  • You Max Out Your Credit Cards

While this mistake isn’t always done intentionally – many people max out their credit cards because of unexpected financial burdens – many people are unaware that they are severely hurting their credit score by maxing out a credit card. Try to avoid using more than 50% of your available credit (preferably less than 30%) to maintain a good debt to credit ratio which will help increase your credit score.

  • You Became A Co-Signer

This can be a sensitive matter of conversation because co-signing often involves two people who are very close and trust each other enough to risk their credit on behalf of the other. Unfortunately, many people haphazardly co-sign without a second thought and without considering the implications of the matter. Before co-signing, make sure that the person you’re co-signing for isn’t a likely risk of delinquency. If they stop paying, you start paying with bad credit – you could also be held accountable for the remainder of the debt as well.

  • You Don’t Worry About “Just One” Missed Payment

According to FICO, “Delinquent payments, even if only a few days late, and collections can have a major negative impact on your FICO Scores.”

Far too often people will neglect to pay their bills on time simply because they forget to, are too busy, or simply don’t think it’s a big deal if they’re just a few days late. Unfortunately this can severely impact your credit score, lowering it substantially. Avoid late payments whenever possible and set reminders if you have the tendency to forget.

Rebuild Your Credit

Whether you’ve been the subject of Murphy’s Law and been rained on with horribly bad luck, resulting in a low credit score, or you’ve just inadvertently made some poor choices that have caused your score to drop, Credit Absolute can help rebuild your credit score quickly and affordably. Don’t continue to be dragged down by poor credit and high interest rates, contact us today for a free consultation!

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Ulysses Martinez
Ulysses Martinez
21:06 05 Jun 20
Credit Absolate is helping me get my credit score up. They have done by far a fantastic job. I couldn't be more happy with the experience and the customer experience is phenomenal as if your part of the family. They make sure you understand your credit usage and the educational videos are very clear. They are changing my life around. Just being with them for 2 months I got my score from poor to fair and dropped of some accounts from my cresit report. I cant thank them enough. Truly a success story
Angel  Maldonado
Angel Maldonado
14:27 30 May 20
They are amazing! Not just Derk but the whole team is great. The videos they provide are so helpful. They just don't help you improve your credit score, they also teach you how to manage your credit score. If you have bad credit contact them 1st before you even start trying to fix your credit on your own!!!
Keith Russell
Keith Russell
23:40 29 May 20
Easy to work with. Very fact based and focus on teaching me how the credit scoring system really works. My credit score increased by 100 points. Best investment in my credit worthiness. Great customer service, this is the real deal.
Fanisha Vela
Fanisha Vela
16:05 05 May 20
This is a wonderful team to work with. They have made the process so easy and efficient. Results seen within the first round of action!
Brandon Dickinson
Brandon Dickinson
01:04 26 Mar 20
What an awesome team. They work hard and get things done. My credit has jumped amazingly and the coaching videos are very informative to every detail. Would recommend this company to anyone looking to better their credit.
Bre Udave
Bre Udave
22:59 04 Mar 20
this has been one of the best experiences i've had working with a company! i am very happy with my success thus far and everyone (especially Leslie) has been so helpful with everything! If you're looking to fix your credit, stop searching and use this company!!
Steven Lasseson
Steven Lasseson
14:51 28 Feb 20
I've tried a few other credit repair companies and Credit Absolute has provided the best service I've come across. In just over a year, they were able to get numerous items removed from my credit report. The process is simple, the staff is easy to work with, and the results are everything you'd hope for. If you are looking for help in your journey to financial freedom, do yourself a favor and give Credit Absolute a call.
Kade Deeyor
Kade Deeyor
21:51 19 Feb 20
Credit Absolute has been a huge help for me. Since the beginning I’ve seen an enormous increase in my credit score. Felicia and Leslie are especially helpful, concise, and very informative. They both always get back to me within minutes if I have any questions or concerns. I would highly recommend Credit Absolute to anyone seeking a better understanding of how Credit Scores actually work or if you’re looking to increase your scores.
Phuong Mai Pham
Phuong Mai Pham
17:56 13 Feb 20
Credit absolute has helped me tremendously over the past few months. My scores for all 3 credit bureaus have increased by 50+ points. I appreciate the education on credit. I am now much more knowledgeable and strategic about when I should and should not use my credit cards. I look forward to my progress as my goal is to purchase a home by the end of the year!
Doug Donaldson
Doug Donaldson
06:13 21 Dec 19
I noticed a few changes on my credit report that had lowered my score which concerned me and after looking at reviews online I decided to set an appointment with Derek at Credit Absolute. I was fully expecting to spend hundreds of dollars for his advice on what I should do to get it back up to where I had it. After consulting with him and looking in depth at my report, he gave me some tips and helped me understand how the 3 bureaus work and what I could do to increase my score. Best of all..... he didn't charge me a penny. Derek is an honest guy, running an honest business, and if you are looking to build your credit score then he is the guy to turn to. It was about a year ago that I met with him and my score is up over 90 points. 10/10 would recommend Derek at Credit Absolute!
Ashley Krolak
Ashley Krolak
21:58 25 Nov 19
Thank you to entire team at Credit Absolute! We have accomplished so much in a short amount of time. They have helped my whole family increase our scores. They are organized, helpful and get the job done all while teaching you helpful hints along the way. I highly recommend this company for any credit needs.
dan uyematsud
dan uyematsud
21:29 13 Nov 19
Simply the BEST!!!!!!! Derick, Felicia and Becky are extremely good at their job. They work very hard to teach one how to improve their credit as they work very hard on their end to build your credit. I am very pleased as I see my credit score increasing in a short period of time. Thank you again, Dan U
nestor victore
nestor victore
22:14 04 Nov 19
You guys have done an amazing job, I'm very happy with my score has improved over 100 points. I'm happy with you guys services and help, thanks.
Tina Abbott
Tina Abbott
02:07 01 Nov 19
My experience with Credit Absolute has been nothing but wonderful! The entire staff are very knowledgeable and understanding. Felica is the one of the nicest people.
Christopher Moore
Christopher Moore
15:10 03 Oct 19
Communication with Derick and the team couldn't be better. I spoke directly to Derick and he was upfront, honest and didn't waste time. I would certainly recommend Credit Absolute to anyone who is looking into credit repair. They'll give you an honest overview of where you are and what they can do to help you reach your goals!
David Burgess
David Burgess
19:02 20 Aug 19
Derick and his team have been extremely helpful and informative throughout this entire process. I would recommend to anyone who wants/needs to repair credit quickly! Worth more than the money without question!
steve moore
steve moore
23:32 16 Aug 19
Derick and his team were awesome! I would highly recommend their services if you are looking to refurbish your credit score!!! +A all around for his team and the willingness to help me out !
Zacary Roberts
Zacary Roberts
03:00 26 Jul 19
Felicia helped me out so much, the company is professional l, but they treat you like your their only client. They are thorough and honest and my credit score has gone up remarkably ever since I started working with them. Thank you so much!
Chris Gunn
Chris Gunn
18:50 25 Jul 19
Good folks. Money well spent. Their service works! I finally got my credit straightened out to where I could buy a home because of them.
Christy Russell
Christy Russell
15:37 25 Jul 19
This company provides a great service! Friendly staff, plain-spoken, direct, no nonsense. They really make you feel like they care. Simple and straight-forward approach. They analyze your credit report and quickly make a plan to step-by-step repair any flags. I highly recommend their program.
Christian Wunder
Christian Wunder
19:35 18 Jul 19
They have been great to work with. Going on 3 months now and my score has taken a huge jump. I've had items removed from my credit and every month we go over our strategy to maximize the improvements. Highly recommend :)
Baron Adelmann
Baron Adelmann
21:59 26 Oct 17
Derick and his team have helped me tremendously! He explains the process of improving your credit and does all of the work for you! My credit score has improved drastically and I know that I couldn't have done it without the help of Credit Absolute. Because of them, my business has continued to thrive in a way I never thought possible. Thank you Derick and the Credit Absolute Team!
Gabriela Lovelace
Gabriela Lovelace
23:17 30 Jun 17
I want to thank the wonderful team of Credit Absolute for all the work they did in help me clean my credit! They have teach me how to keep my credit clean and how to make it grow! I will be their customer for life and I recommend to anyone who needs help with their credit! Credit Absolute you are awesome!!!!
Sho Sho Smith
Sho Sho Smith
22:31 16 Feb 17
Derek just made my day when I thought my credit was being compromised due to a balance on my late husband's credit card. He checked it out my credit health and assured me that I lost no points and the balance was forgiven. Great news! He gave me pointers on how to get my credit score even higher to put me into the premium level and coached me on getting back on my feet, credit-wise, after my husband's death. A great experience!
Vanity Hernandez
Vanity Hernandez
20:15 19 Jul 16
I was referred to Derick when my credit score dropped 3 points as I was in the process of trying to get a mortgage loan. Derick gave me GREAT advise and also helped confirm all the credit myths I have overheard on how to improve your credit score. Not only did he give me advise, he not once tried to have me hire him like others usually do. Derick was genuine and that's hard to come across with business. :)
Ian Farruggio
Ian Farruggio
19:29 05 Jul 16
Derek was completely professional and offered helpful suggestions to help me improve my credit. He was honest, in that his services were really not needed and helped to point me in the right direction free of charge. If you have any questions regarding your credit, this is the only place to go!!!
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