Twelve Things To Avoid Like The Plague When It Comes To Your Credit Score

Online, October 24, 2011 (Newswire.com) - It's a safe bet that very few people have come through these past few years of economic depression without a few bumps and bruises. A lot of people have weathered the storm worse for wear - and their credit scores now reflect this.

But there are things you can avoid doing that will help keep your score intact or improve it. Here are 12 things that you may be doing that can cause serious damage to your credit score.

1. Thirty-five percent of your credit score is payment history, so it stands to reason that consistently paying your bills late will hurt your credit score. Pay on time, every time to see improvement if your score is lower than you'd like.

2. Don't ignore your bills altogether - this is worse than paying late. Every time you miss a credit card payment, you are a step closer to having that card charged off.

3. If your creditors believe you aren't going to pay your bills, they may choose to charge off the account. This is one of the worst things for your credit score, and can damage it greatly.

4. If your creditors send your accounts to collections, it shows that the creditors gave up on trying to collect from you. This is very bad and very damaging.

5. Filing bankruptcy will wreak havoc on your credit score. Look for other alternatives before filing.

6. A foreclosure on your home will hurt your credit score now, and cause issues for you in the future.

7. If you avoid your bills, and the courts get involved to make you pay, it's called a judgment. This hurts your credit score tremendously.

8. Maxed out credit cards and cards that are over the limit make your credit utilization higher than it should be, and it not only is bad for your credit score, but it can turn away potential lenders as well.

9. Don't close out a credit card that still has a balance. This will look as if you've maxed the card out and will cause your score to drop.

10. Likewise, you shouldn't necessarily close old credit cards. This can damage the length of your credit history - the longer, the better for you.

11. If you apply for a multitude of new credit cards or loans within a short period of time, your credit score will drop. These applications should be kept to a minimum.

12. If you have only loans or only credit cards, your credit score will be lower. You should instead have a mix of credit.