1. Closing all credit cards- As soon as people see that their credit isn't as high as they thought it was, they stop their credit cards and its spending. Closing your credit accounts renders them inactive, meaning that they will finally fall off your report, leaving you with a smaller credit history. It affects your future credit requirements.
  2. Not paying your credit bills on time-You should pay your bills on time, and in full, to maintain a good standing with the credit bureaus. Missing a couple of payments will show on your credit history. Late payments can affect your credit-reputation severely.
  3. Credit account has maxed out.
  4. Shopping for credit-A new credit or loan application is "inquiry" by creditor with credit report, this lets the credit bureaus know that you're actively looking for new credit. After inquires report signals "high risk" on the report, more inquires and more points can affect the score badly.
  5. Co-signing anything- Parents outing their kids around driving age will probably be familiar with this one. Before signing on dotted line for anyone, consider that your credit history is showing whatever they're asking you, just as financially responsible as they are. Running the risk of lowering your credit score, a loan raises debt-to-income ratio to high.
  6. One overall credit report/score- Another common myth when it comes to credit reports, is that one overall report and score for you, as well as, your own report along with your own number is generated by three credit bureaus, worrying about your three credit scores is important.
  7. Thinking all credit scores are the same-Having 3 overall credit scores to worry about from each of the credit bureaus, knowing about the FICO score. The FCRA, or Fair Credit Reporting Act, is a list of rules intended to keep creditors and credit reporting agencies in check. The most important things are, information on your credit report, and your right to free copies of all 3 credit reports.
  8. Not using your full name on credit applications- Anyone who shares the similar name as one of their parents knows how annoying this can be. It doesn't even need to be a family member; anyone with the same name as someone else, has probably checked their credit report only to discover their personal information listed. This includes names, addresses and employers - as well as, the shocking fact that some of their credit history doesn't match up with their own records, for better or worse.
  9. Not having credit-It’s quite surprising and even baffling to see that there are people that refuse to use any type of credit at all, choosing instead to pay for everything with the cash from their personal bank account. Refusing any type of credit can prove to be a huge mistake. Not only will you have nothing to show as far as sensible money management on your part (when applying for a loan) is concerned, you will also be left without a credit score, which can make anything from purchasing a home or car, to landing a good job next to impossible.

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