Nobody wants to be declined for credit—but it happens. One of the most common reasons? A low credit score. The good news is that your credit score isn’t permanent. With the right habits, smart decisions, and a bit of consistency, credit score repair is entirely possible.
In this guide, the Finance365 team shares five common credit mistakes to avoid and five simple actions you can take today to start improving your score.
5 Common Credit Mistakes That Hurt Your Score
1. Ignoring Your Credit Report
Out of sight shouldn’t mean out of mind. If you’re not regularly reviewing your credit report, you may miss out on catching errors, outdated listings, or even fraud. A regular check-in ensures you’re in control.
2. Maxing Out Your Credit Cards
Using more than 50% of your available credit can signal financial strain to lenders. Try to keep your usage closer to 20% of your total limit to demonstrate responsible borrowing.
3. Applying for Too Much Credit Too Often
Every new application triggers a hard inquiry on your report. Too many inquiries in a short time frame can lower your score and raise red flags with lenders. Space out your credit applications whenever possible.
4. Closing Old Credit Accounts
Paid off an account? Great! But don’t be in a hurry to close it. Long-standing accounts reflect consistent credit behaviour and can positively impact your credit history—a key part of your score.
5. Missing Even One Payment
A single late payment can stay on your report for up to 24 months. Whether it’s a store account or a phone bill, timely payments matter. Consider setting up automated payments or calendar reminders.
5 Easy Ways to Start Repairing Your Credit Today
1. Pay Down What You Owe
Even small payments can help reduce your debt-to-credit ratio. Focus on high-interest debts first to save money while improving your score at the same time.
2. Dispute What Doesn’t Belong
Not all listings are accurate. Check your credit report regularly and dispute incorrect listings such as settled accounts still marked as unpaid. You can get a free credit report from Finance365 to start this process.
3. Clear Defaults and Judgments
Have defaults or court judgments against your name? These can be settled or negotiated. Once paid, always request written proof and ask credit bureaus to update your profile.
4. Press Pause on New Credit
Hold off on applying for new loans or cards while repairing your score. Instead, show you can manage your existing accounts well, which helps rebuild lender trust.
5. Pay On Time, Every Time
It may sound simple, but it’s powerful. Consistent, on-time payments are one of the strongest indicators of creditworthiness. Use reminders or automation to stay on track.
Credit Score Repair: Take Control Today
You don’t have to fix everything at once—but taking the first step can make a huge difference. Repairing your credit score isn’t just about financial improvement; it’s about giving yourself greater access to opportunities in the future.
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