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    Edmundo Daco Jr.

    There are many mistakes that people make that lower their credit scores. First and probably the most usual mistake is not paying their debts on time. Late payments will register to the credit bureaus which will decrease your credit score. Second is cancelling old credit cards. These credit cards have higher credit limits, which will make your credit utilization smaller when using them compared when using credit cards with smaller limit. Higher credit utilizations will lead to lower credit scores. This leads to the third reason, which is getting too much debt that they can't pay. Utilizing your credit score at the maximum or getting a loan which you cannot pay will lead to defaulting.

    Fourth, it's a mistake to make many loan applications. These applications require hard pulls on your credit report and they will result to decrease on your credit score. Fifth, is not being aware of your credit score and not doing anything to improve it. Your credit score is very important when getting financing products and credit cards. You therefore need to give attention to your credit score if you want to leave well, especially in a country like the US.

    Note: This is not a legal advice.

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