How to wreck your credit score?

1. Canceling a long-held but seldom-used credit card account may seem sensible, however it will shorten the length of your credit history, which can lower your score. Better to dump a few of the more recently acquired cards, and hang on to the oldest one you’ve got thus enhancing your credit history.
2. Thinking about accepting the offer from a business to finance your purchase, don’t your bank considers this a “last resort” loan which is a big red flag for higher credit risk.
3. If you’re battling a bill the disputed credit line may be ignored during your score calculation. This will make it appear as though you are using a higher percentage of the total credit available to you, which can result in a lower-than-average number.
4. Purchasing that fancy cell phone or car will trigger what’s called a hard inquiry, each one of which lowers your score by a few points.
5. Not paying those parking tickets can really reek havoc on your credit score especially in cities like Chicago, Washington D.C.,and New York where unpaid fines are turned over to collection agencies.

Source: Reader’s Digest

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