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Last week I gave you a list of things that under FICO 08 can help increase your credit score. There’s also a number of things that can hurt your credit score significantly more, however. You need to make sure NOW that under FICO 08 your score won’t drop. Here are a few things that many of us do today which will result in a lower score under FICO 08. For the sake of your credit score, do your best to avoid the following:
- Making late payments. In the past, one late payment could lower your score 100 points. Now, one late payment won’t hurt you as much, but regularly missing payments will hurt your score more. Do your best to make as many payments as you possibly can on time, or you will see a drop in your score.
- Using most of your available credit. Using more of your available credit will do more harm to your credit under the new system. Now that under FICO 08 your score will be hurt less by applying for credit, a good way to avoid this is to try and get some new credit. This will increase your available credit and prevent your score from dropping because you’ve used too much of your available credit.
- Getting fined. This isn’t really related to FICO 08 directly, but having parking tickets and other fines show up on credit reports is becoming increasingly common. Pay your fines on time before you see them on your report!
- Closing your credit cards. Even if you cut them up, don’t close the accounts. Having open accounts will prevent your score from dropping as it shows you have available credit, and it increases the length of your credit history. Using old cards from time to time is important under FICO 08, but you definitely should not close them!
- Only use credit cards. You need to have both revolving and fixed credit (ie. a car loan) to be seen as being diversified under FICO 08. If all you have credit-wise is cards, your score will suffer.
By avoiding the above mistakes, you can be ahead of the curve of FICO 08 and keep your credit score from falling under the new system. Be proactive when it comes to your credit - take care now to make sure that when your score is based on FICO 08 your credit rating won’t drop a few levels.
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[…] Five Ways to Hurt Your Credit Score in 2008 Last week I gave you a list of things that under FICO 08 can help increase your credit score. There’s also a number of things that can hurt your credit score significantly more, however. You need to make sure NOW that under FICO 08 your score won’t drop. Here are a few things that many of us do today which will result in a lower score under FICO 08. For the sake of your credit score, do your best to avoid the following: Making late payments. In the past, one late payment could lower your score […]
[…] Five Ways to Hurt Your Credit Score in 2008 Last week I gave you a list of things that under FICO 08 can help increase your credit score. There’s also a number of things that can hurt your credit score significantly more, however. You need to make sure NOW that under FICO 08 your score won’t drop. Here are a few things that many of us do today which will result in a lower score under FICO 08. For the sake of your credit score, do your best to avoid the following: Making late payments. In the past, one late payment could lower your score […]
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[…] Five Ways to Hurt Your Credit Score in 2008 Last week I gave you a list of things that under FICO 08 can help increase your credit score. There’s also a number of things that can hurt your credit score significantly more, however. You need to make sure NOW that under FICO 08 your score won’t drop. Here are a few things that many of us do today which will result in a lower score under FICO 08. For the sake of your credit score, do your best to avoid the following: Making late payments. In the past, one late payment could lower your score […]
[…] Five Ways to Hurt Your Credit Score in 2008 Last week I gave you a list of things that under FICO 08 can help increase your credit score. There’s also a number of things that can hurt your credit score significantly more, however. You need to make sure NOW that under FICO 08 your score won’t drop. Here are a few things that many of us do today which will result in a lower score under FICO 08. For the sake of your credit score, do your best to avoid the following: Making late payments. In the past, one late payment could lower your score […]
[…] Ways to Hurt Your Credit Score in 2008 Posted in April 7th, 2008 by in Uncategorized Five Ways to Hurt Your Credit Score in 2008 Last week I gave you a list of things that under FICO 08 can help increase your credit score. […]
[…] Five Ways to Hurt Your Credit Score in 2008 This isn’t really related to FICO 08 directly, but having parking tickets and other fines show up on credit reports is becoming increasingly common. Pay your fines on time before you see them on your report! Closing your credit cards. … […]