• SCG

Credit Dont's

Updated: Apr 1, 2019

While there are many things you SHOULD do to improve your FICO score, there are also certain things you should avoid doing if you want to improve your FICO score.

In order to keep your credit rating as high as possible, DON'T do the following: 

Don't try to increase your available credit by opening several new credit cards you don't need.  It’s easy for this to backfire and may wind up lowering your credit score.

Don't play musical chairs with your debt.  In fact, paying down your revolving credit instead of moving it around is the best way to improve your credit score.  Owing the same amount on fewer accounts can lower your score.

Don't try to raise your score by closing unused credit cards.  If it still appears on your credit report, it may be considered in the credit score. Closing an account does not make it go away.  

Don't rapidly open a lot of new accounts if you're just starting out.  The more new accounts you have, the lower your average account age, which isn't good.  This also looks risky for new credit users. 

Don't apply for numerous credit cards in a short period of time.  This can indicate a higher risk for creditors, which can lower your credit score (most often the FICO Score).  One exception to this rule is if you're applying for an auto loan or a mortgage and multiple lenders ask for your score in a short period of time.  These will be seen as a single inquiry and shouldn't affect it.

Don't try to have a better mix by opening new credit card accounts.  This could lower your credit score instead of raising it.  You should only open new accounts as you need them.

Don't close an account thinking it will make it go away.  Accounts that are closed still show up on your credit report and could be factored into your score. 

Don’t do anything without talking to us first.  In addition to these actions to avoid, it’s always best to contact us before you make any moves that could have an impact on your credit rating.  We’re here to assist homeowners every day and can help you avoid doing anything that might jeopardize your chance to qualify for a home loan.

If you have any questions or if you would like us to review your personal credit report, please don’t hesitate to contact us.  We have a lot of experience helping our clients improve their credit scores, which assisted them in qualifying for a home loan and in some cases helped them obtain a lower interest rate.

#FICOscore #creditreport #mortgage #credithistory #creditcard #creditrating

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