Nobody wants to be declined for credit, but it happens. One of the most common reasons? A low credit score. The good news? Your score isn’t permanent. Credit score repair is entirely possible with the right steps, smart habits, and a bit of time.
In this guide, the Finance365 team walks you through five common mistakes that may be hurting your credit and five easy actions you can take today to start turning things around.
5 COMMON CREDIT MISTAKES THAT HURT YOUR SCORE:
1. Ignoring your credit report altogether
Don’t opt for out of sight, out of mind. If you never check your report, you might miss errors, outdated listings, or even fraud. If something is hurting your score unfairly, you’ll want to catch it sooner rather than later.
2. Maxing out your credit cards
Using up most of your credit limit sends a signal that you might be overextended. It puts pressure on your credit profile and brings your score down. Try to keep your usage below 50% of your credit limit, or ideally closer to 20%, to show healthy credit behaviour.
3. Applying for too much credit too often
Every time you apply for credit, there’s a “hard inquiry” added to your profile. A few of these spread out is normal, but if they stack up too fast, it can look like financial stress to banks and other credit providers. Space out applications when possible.
4. Closing older credit accounts
It might seem like a smart move to close a paid-off account, but if it’s been open for a long time and in good standing, it’s helping your score. Older accounts show consistency. This builds trust around your ability to manage your credit well.
5. Missing even just one payment
We know it’s easy to forget a store account or miss a monthly payment when life gets busy, but every late payment chips away at your credit record. Late payments, even a single one, can hang around on your credit report for up to two years.
5 EASY WAYS TO START YOUR CREDIT SCORE REPAIR TODAY:
1. Pay down what you owe
High balances don’t just cost you in interest. They cost you points on your score, but even small payments can move the needle in the right direction for you. Have a payment plan in place, starting with the account that has the highest interest rate.
2. Dispute what doesn’t belong
Get your free credit score and report from us here. If something doesn’t look right, like a paid-up account still showing as unpaid, dispute it immediately.
3. Clear defaults and judgments
If you’ve got listings against your name, don’t panic. You can often settle or negotiate payment plans. Once paid, make sure you get it in writing and request that the credit bureaus update your profile.
4. Press pause on new credit
Unless you really need it, avoid applying for new accounts while you’re working on your credit score repair. Focus on managing what you already have responsibly, because it sends the right message to credit providers.
5. Pay on time, every time
This one’s simple but powerful. Paying every account on time is one of the most effective ways to rebuild your credit score. Set reminders or automate payments to make it easier.
Adding credit score repair to your to-do list is one of the smartest things you could do if your score’s gone bad or isn’t as good as you want it to be. You don’t need to do it all at once, but taking the first step matters.
Want help understanding your credit score or improving it? Join Finance365 to stay up to date with improvements or changes to your score. Our credit experts are here to help you every step of the way.
