3 Credit Score Mistakes That Could Cost You Thousands

Your credit score impacts every major financial decision – from mortgage rates to car loans. Even if you’re not house-hunting now, avoiding these common pitfalls will save you money later.

Mistake #1: Thinking “Caught Up” Means “Forgiven”

• Late payments remain on your report for 7 years, even after you’ve paid
• Credit card companies may take 1-3 weeks to report payments to bureaus
• Smart move: Always prioritize payments to accounts that report to credit bureaus

Mistake #2: Believing Dollar Amounts Matter

• A $1 late payment hurts your score as much as a $1,000 late payment
• Fewer late payments = higher score, regardless of amounts
• Pro tip: Focus first on eliminating all late payments, not just large balances

Mistake #3: Closing Credit Card Accounts

• Closing cards:
  • Shortens your credit history (15% of your score)
  • Reduces available credit, increasing utilization ratio
• Better approach:
  • Keep old cards open and active with occasional small purchases
  • Request credit limit increases (but don’t spend more!)

Bonus Strategy:
Call your card issuers to request higher limits. This improves your credit utilization ratio – just maintain the same spending habits.

Why This Matters Now:
Even if you’re not applying for loans soon, building good credit takes time. These fixes can mean:

• Lower interest rates (saving thousands over loan terms)
• Better approval odds
• More negotiating power with lenders

Questions about your specific situation? I’m happy to help – just reply to this email.

Next Steps:

1. Check your credit report at [AnnualCreditReport.com]
2. Identify any late payments to address
3. Keep old cards active with small, regular purchases

Remember: Small changes today lead to big savings tomorrow.

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