Credit Mistakes That Can Haunt You For Years

Your credit score affects everything from loan rates to job opportunities. Avoid these common pitfalls that millennials make.

Credit Score Impact 300 - 850
Poor Fair Good Very Good Excellent

Most Damaging Credit Card Mistakes

Carrying High Balances

-100 pts

Using more than 30% of your credit limit hurts your score. Maxing out cards can drop your score by 100+ points instantly.

Recovery time: 3-6 months after paying down

Late Payments

-180 pts

Just one 30-day late payment can devastate your score. After 90 days, the damage is severe and long-lasting.

Recovery time: 12-24 months

Opening Too Many Accounts

-50 pts

Each hard inquiry knocks off 5-10 points. Opening several cards quickly looks risky to lenders and lowers your average account age.

Recovery time: 6-12 months

Closing Old Accounts

-30 pts

Closing your oldest card shortens credit history length (15% of your score) and reduces total available credit.

Recovery time: 3-6 months

How to Rebuild Your Credit Score

If you've made credit mistakes, don't panic. Follow these proven strategies to rebuild your credit over time.

Pay on Time, Every Time

Set up autopay for at least the minimum payment. Payment history is 35% of your score.

Reduce Credit Utilization

Aim to use less than 10% of your total available credit for maximum scoring benefits.

Become an Authorized User

Ask a family member with good credit to add you to their old, established account.

Consider a Secured Card

Put down a $200-$500 deposit to establish positive payment history if you can't get approved.

Credit Score Impact Simulator

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