The 7 most common credit mistakes — and how to avoid them

1. Closing old credit cards

Closing a no-fee card you have had for years removes its limit from your utilization immediately and its age from your history eventually. Keep it open with one small recurring charge and autopay.

2. Maxing out one card

Per-card utilization is scored on its own. A card at 95% drags the file down even when your overall ratio looks healthy. Spread balances and pay the highest-utilization card first for scoring purposes.

3. Paying after the statement closes

Your issuer reports the statement balance, not what remains after your payment. Paying a few days before the closing date is what lowers the number that reaches the bureaus.

4. Applying for several accounts at once

Multiple inquiries and multiple brand-new accounts in a short window lower your average account age and signal risk. Space applications out, and never apply for anything while a mortgage is in process.

5. Paying a collection before validating it

A payment can be treated as acknowledgment of the debt and, in some states, restart the statute of limitations. Validate in writing first, and get any agreement documented before money moves.

6. Ignoring the reports you never check

Most people check one bureau. Errors are frequently on the other two, and a mortgage lender uses the middle of all three. Review all three at least annually.

7. Believing credit myths

• Carrying a balance builds credit — false, it only creates interest
• Checking your own report lowers your score — false, it is a soft pull
• Income affects your score — false, it is not in your credit file
• Paying off a collection always removes it — false, it usually changes only the status