6 Common Credit Card Errors That Could Surprisingly Tank Your Credit Score
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Written by
Dia Adams
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Edited by
Amen Oyiboke-Osifo
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Reviewed by
Jasmin Baron
Credit cards can elevate your financial flexibility, but even seasoned cardholders slip up. Some missteps are so subtle, they fly under the radar — yet the credit bureaus are always watching. Here’s a look at the most common credit card errors that can send your credit score tumbling, plus tips to steer clear of them.
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1. Missing a Payment — Even Just Once
Late payments are the number one culprit behind frustrating score drops. A single bill paid 30 days past due can haunt your history for years, shaving more than 100 points off your score — an impact that lingers even if you quickly pay up. Sadly, reminders can be scarce, especially if e-statements go to an overlooked inbox.
Pro tip: Set up automatic payments for the minimum payment on all your cards, so you won’t miss any bills that come in on rarely-used cards. You can then adjust the amount when you are ready to pay the full bill. Your future self will thank you.
2. Only Making Minimum Payments
It’s tempting to pay just the minimum and promise yourself you’ll catch up with your next paycheck. But as balances balloon, your credit utilization ratio rises — a fancy way of measuring how much credit you use compared to your limit. Utilization counts for nearly a third of your credit score, and anything above 30% could hurt your score.
Many believe staying current is enough. Not so. If you charge close to your limit — say, $900 of a $1,000 line — it signals risk to lenders. High utilization can drop your score and signal that you’re overextended, regardless of solid payment habits.
Pro tip: Treat “minimum due” as the floor, not the goal. Pay as much above it as your budget allows. The good news is that a temporary blip in your usage won’t hurt you for long. Most credit scoring models operate with real-time balances, so if you pay off your large purchase on time, your utilization will go down soon after.
3. Applying for Multiple Credit Cards at Once
Every new credit card application triggers a hard inquiry on your credit report. Rack up several applications in a short period, and those small dings combine to take a more noticeable bite out of your scores. While inquiries account for only 10% of a FICO score, their cumulative effects can be significant.
Plus, lenders may wonder if you’re desperate for new credit, which can be a red flag. Statistically, six or more inquiries within a short period correlate with up to eight times the risk of bankruptcy.
Pro tip: Space out applications by at least six months and target cards you’re likely to be approved for.
4. Closing an Old (or Unused) Credit Card Account
It feels virtuous to tidy up your wallet by closing old accounts, but this can boomerang badly. Closing a card decreases your available credit and can shorten your overall credit history, both of which may negatively impact your credit score.
This especially applies to cards like secured or student credit cards, which may have been your first bite at credit. It’s better to convert a starter card into a general-use credit card than to close it outright.
Pro tip: If your card has no annual fee, keep it open and occasionally use it for small, manageable purchases.
5. Maxing Out Cards for Debt Consolidation
Rolling multiple balances onto one card with a low intro rate sounds smart, but maxing out a single card drives up utilization and risks dinging your score, especially if you close the paid-off cards.
Pro tip: Consolidate carefully, keep an eye on your balance-to-limit ratios and avoid closing old accounts post-transfer if you are disciplined. Just beware of running them up again. If your choice is between closing the account and risky charging, close the account.
6. Neglecting To Check for Errors and Fraud
Errors on credit reports are more common than most people think — a misspelled name here, an outdated address there or a duplicate account that shouldn’t exist. Even seemingly minor mistakes can quietly drag down your score or cause hassle when you try to open new accounts. Sometimes, credit files get mixed up altogether, turning someone else’s credit blunder into your problem.
And then there’s the risk of outright fraud. Skipping over your credit card statements might not seem like a big deal, but this is exactly how identity thieves slip through the cracks. It’s not always a huge unauthorized purchase; often, a fraudster will start small, sneaking in low-dollar charges, knowing many cardholders won’t notice for months.
Life moves fast, but if you don’t take a moment to scan those monthly statements, you risk letting bogus charges go unchecked. The same goes for your credit reports — review them from all three bureaus periodically (it’s free at AnnualCreditReport.com), and if you catch a mistake, don’t wait to dispute it. Staying vigilant with your monthly statements and credit checks can save you from bigger headaches down the line.
Pro tip: Set a recurring reminder on your calendar so reviewing both your card statements and credit reports becomes second nature, not an afterthought.
Bottom Line
Credit scores can sink for reasons that seem trivial on the surface. But every credit misstep, no matter how small, can have outsized financial consequences. Guard your score by paying attention to the details — and remember, nobody cares about your credit as much as you do.
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