Don’t assume that paying your bills on time is enough to guarantee good credit. These common errors can depress your credit score.
* Staying out of debt. Having no credit history is nearly as bad as having a poor history because lenders have no way to judge how you would handle a loan.
* Shopping for the best loan rates. Too many inquiries can damage your credit score. As a rule of thumb, six inquiries within six months will concern a lender.
* Transferring balances on credit cards. This tactic can bring down your credit score.
* Missing the due date. If a payment is even one day overdue, it’s late. Even one late payment can lower your score.
* Closing old accounts. This can shorten your credit history, which will lower your score.
* Co-signing for a loan. The primary borrower’s mistakes will end up on both signers’ credit reports and thus hurt your score.
