5 Things You Should Avoid To Ensure A Good Credit Score

A good credit score is one of the most valuable components in your financial health and is most used by financial companies to rate the creditworthiness of their customers. For instance, a poor credit score means poor financial management, while a good credit score translates to a trustworthy customer.

A client with a good credit score will often have an easy time qualifying for a personal or a instant loan. This is because the credit score is commonly used by borrowers to determine interest rates. It takes a lot of time to build up a comprehensive credit score, and one poor decision could ruin it.

Here are 5 things you should avoid to ensure a good credit score.

1. Missing a payment

Missing a credit card payment can be extremely detrimental to your credit score. For example, you could lose up to 100 points if you missed a single payment. Believe it or not, payment history contributes up to 35% of your total credit score. One way to avoid a situation where you could fail to pay your bills on time is to set a reminder alert.

2. Maxing out your cards

Ensure that your credit card always has value in it. When you are given a credit card amounting to $6,000, do not immediately think of going for an expensive vacation. Spending all your credit cards within a short period will hurt your credit score. Always have extra funds around to help you in case of an emergency.

3. Shopping for a new credit card

One thing many people do not understand is that the more inquiries you make on a new credit card, your credit score will be affected negatively. You should avoid a situation where you open too many credit cards within a short period. Even after closing your accounts, your information will take a long time before they are eliminated from the system.

4. Avoid co-signing for a credit card

It is commonly accepted to co-sign a credit card with a friend or a relative. However, you might realise that you are putting yourself at risk by allowing the co-signing to happen. Should the person default or delay in paying back the debt, you will be equally liable. This way, by avoid co-signing for a credit card your credit score will not be affected by such an action.

5. Make medical payments on time

Medical loan providers may not be as pressing as other loan providers. Due to this, it can be easy to forget to pay back a medical loan. The impact of delaying a loan payment will significantly impact your credit score negatively. You should seek information on how much the insurance company is covering, and what the remaining balance is.


Long-term financial goals begin with taking good care of your credit score. You must understand your credit score and how you can work to improve it. Even if you are financially stable today, you never know what your future holds. Furthermore, how you treat your credit card today will determine how much you are qualified to borrow tomorrow.