Credit Basics
What Hurts Your Credit Score (And How to Fix It)
Learn the most common mistakes that lower your score and how to reverse them.
Jeri Toliver
Last Updated: November 25, 2024
Hey! I'm Jeri!
I'm a financial educator and speaker known for simplifying complex credit and funding strategies. I've helped thousands of individuals and small business owners get the credit they deserve.
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Most people think their credit score drops for mysterious reasons. They wake up, see the number dip, and immediately think:
“Okay, what did I do wrong now?”
But credit scores aren’t random. In fact, they’re very predictable.
They rise and fall based on behavior.
The good news? If you understand why your score drops, you know exactly how to bring it back up.
Here’s a simple breakdown of the most common score killers… and what you can do to fix them.
Late Payments (The #1 Score Killer)
Your payment history makes up 35% of your score. So when a payment is missed, lenders take it seriously.
Even one 30-day late can drop your score 50–100 points, depending on your credit history. And 60–90 day lates? Those drop your scores even more.
How to Fix It
- Set up autopay for the minimum on every card.
- If you're behind, call your creditor and ask for a goodwill adjustment or a payment plan.
- Bring every account current — that alone can trigger a score jump.
👉🏾 Pro tip: The older the late payment gets, the less it affects your score.
High Credit Card Balances (Utilization)
Your credit utilization is 30% of your credit score, and it’s one of the easiest things to fix quickly.
The higher your balances are compared to your limits, the more your score drops.
Example:
If you have a $1,000 limit and your balance is $700… that’s 70% utilization.
Lenders see that as “risk.”
How to Fix It
Aim for:
- Under 30% to be safe
- Under 10% for the best possible score
Ways to lower it:
- Pay balances before the statement closes
- Request a credit limit increase
- Spread balances across multiple cards
- Avoid maxing out a single card
This alone can raise your score fast.
Closing Old Accounts
Most people think closing a credit card is “responsible.”
But if it’s one of your oldest cards, it can actually hurt your score.
Here’s why:
Closing a card reduces your available credit, increases your utilization, and shortens your credit age.
All of that = a score drop.
How to Fix It
- Keep old cards open — even if you barely use them.
- Put a small subscription on the card and autopay it.
- Only close a card if the fee is outrageous and it’s not your oldest account.
Too Many Credit Inquiries
A hard inquiry is no big deal. But multiple inquiries in a short period?
Lenders start thinking:
“Are you desperate for credit?”
And that perception alone can lower your score.
How to Fix It
- Avoid applying for multiple cards at once.
- Group auto or mortgage shopping within a 14–45 day window — they count as a single inquiry.
- Only apply for what you actually need.
Your score recovers from inquiries within a few months.
Collections & Charge-Offs
When a debt goes unpaid, it gets sent to collections or charged off — which is basically a creditor saying:
“We don’t expect you to pay this anymore.”
This is one of the most damaging marks on your report.
How to Fix It
- Check if the debt is valid, accurate, and within the statute of limitations before paying.
- Request a pay-for-delete when possible.
- Dispute any errors or outdated information.
👉🏾 Pro tip: Be cautious about paying collections without a strategy. Even after payment, the account may still show on your reports.
Bankruptcy, Foreclosure, or Repossession
These are major negative events, but here’s the truth most people don’t know:
You can still rebuild.
Many of our members have gone from bankruptcy to 700+ credit scores in under 18 months.
How to Fix It
- Rebuild with a mix of secured cards, installment loans, and clean payment history.
- Keep utilization low and avoid new negatives.
- Monitor your reports regularly.
These items lose power as they age.
A Thin Credit Profile (Not Enough History)
You can have no late payments, low balances, and still have a lower score if you simply… don’t have enough history.
How to Fix It
- Become an authorized user on someone’s well-managed, long-standing card.
- Open a secured card or credit builder loan.
- Use your cards lightly but consistently.
Credit grows with time. Every month of positive activity matters.
Errors or Inaccurate Information
This is more common than you think. Your score can drop because a creditor reported:
- A payment late that wasn’t
- A balance higher than it actually is
- A duplicate account
- Someone else’s information entirely
How to Fix It
- Pull all three reports: Experian, TransUnion, Equifax
- Dispute inaccuracies with supporting documents
- Follow up every 30 days
A successful dispute can raise your score instantly.
Final Takeaway
Your credit score doesn’t drop without a reason. Once you understand the behaviors that hurt it — late payments, high balances, closing old accounts, unnecessary inquiries, collections, and lack of history — you gain the power to reverse the damage.
Small changes create big results: pay on time, lower your balances, keep old accounts open, apply strategically, rebuild with intention, and challenge anything that doesn’t belong on your report.
Your score isn’t permanent. It’s rebuildable.
And with the right habits and strategy, it’s absolutely possible to go from "bad" to "excellent" credit faster than you think.
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