Maurie Backman writes for The Motley Fool: “Though Americans are notorious for abusing their credit cards and taking on more debt than they should, new data shows that collectively, consumers have an average FICO score of 700. And that’s not too shabby, considering that the highest possible score is 850, and that a perfect credit record is pretty hard to come by. If you’re among the countless Americans with excellent credit, you should by all means celebrate that achievement — but don’t get too cocky. Sometimes, all it takes is a single mistake to turn a great score into one that’s mediocre or, worse yet, downright poor.”
Your credit score gives lenders the detail picture of how well you responsibly manage your credit. By avoiding mistakes that can derail your credit score, you can secure loan approval at a lower interest rate and save money over the long run.
Here are the some tips to avoid in order to preserve your credit:
- Missing a payment
- Opening too many credit cards or accounts at once
- Using too much of your available credit
- Closing old credit card accounts
- Co-signing a loan
These moves can derail the credit you’ve worked so hard to build, so be sure to avoid them at all costs.