FICO scores are used in 90% of credit decisions, thus it’s important to be concerned about your credit score. Credit scores are used to determine interest rates on loans as well as other credit products. One mistake not to make concerning your credit score is to miss credit card payments as this could drastically lower your sore by 100 points.
Another mistake is to max out your credit card. People who usually have the best credit scores use less than 5.6% of their available credit. Staying within your limit shows that you have self discipline and looks good to creditors. In addition rate shopping can lead to a lower score if it is not done within 30 days.
Finally forgetting to pay medical bills can be costly to your credit score. The impact on your credit score can be great, for example a medical bill of $100 can reduce your score by 100 points. Thus it’s important to follow up on medical bills.
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4 Costly Mistakes That Can Destroy Your Credit Score