A. Opening Accounts & Credit Inquiries – This is really important to know during the Holiday Season. While it may seem a good idea to sign up for all the new credit cards at the mall or to get that discount on a purchase, it is not a good idea. In fact by opening several new credit accounts to get the holiday discounts, you can degrade your scores for years to come.

B. Wrong Type of Credit Card – Department Store and Gas credit cards are a nice convenience but they do not reflect as positively on your credit as does a mainstream bank issued credit card.

C. Closing Accounts – By closing accounts you lose credit history. It is seldom if ever wise to close an account. You may not like the attitude of the company. Don’t shoot yourself in the foot. A longer time with good credit is vastly better than the alternative.

D. Late Payments – It is simply not worth the aggravation of having a late payment of any kind. A mortgage late payment is particularly damaging. Avoid late payments. If a late payment occurs, contact me for counseling on how to mitigate such.

E. High Credit Card Balance to Available Credit Limit – It used to be that you could have 30% of your available unsecured credit in use. With some it is still fine. With those that have updated to FICO 08, 10% is the optimal credit in use.

F. Accounts with Finance Companies – Finance companies are not considered main-stream lenders. As a result, even applying for a loan with a finance company may reduce your credit score.

G. Exceeding Credit Limits – Do not exceed your high credit limits. You control this. Manage your limits carefully.

H. Paying a Collection Account – Do not pay a collection account. There are other ways to settle a legitimate collection debt without doing further harm to your credit scores. Contact me for the how to do this.

I. Paying a Charge-Off Account - Do not pay a charge-off account. Yes you still may owe this debt but like the collection account there are other ways to settle a legitimate debt without doing further harm to your credit scores. Again, contact me for the how to do this. It differs on a case by case basis.

J. Paying Off All Credit Cards Monthly – Nope. This is an ok practice if you have had Grade A Credit for a decade or so. For all others, we are best advised to maintain a small balance on our credit cards. Manage the interest and fees so they are reasonable and manageable. Keep the overall balance to 10% of the available credit.

K. Not Using Credit – Credit is either a use it or lose it proposition. A good practice is to utilize each open line every 3- 4 months. Maintain a minimal payment with a minimal balance alternating between 3 to 4 bank cards.