5 Things Hurting Your Credit Score (That You Might Not Know About)

When most people think about credit score damage, they assume it’s all about missed payments or maxed-out credit cards. And while those are major factors, they’re only part of the story. In reality, your credit score can be silently suffering from actions—or inactions—you didn’t even realize were harmful.

Understanding the hidden influences behind your score is just as important as knowing the basics. These overlooked mistakes can quietly chip away at your credit profile, leaving you confused when your score drops despite “doing everything right.”

Let’s break down the five most common yet surprisingly sneaky things that might be dragging your score down—and what you can do to fix them.

📉 1. Closing Old Credit Accounts

You might think that closing an old credit card is a smart move—especially if you no longer use it. But this seemingly harmless action can backfire on your credit score for two big reasons:

Why It Hurts:

• Reduces your overall credit limit, which raises your credit utilization ratio

• Shortens your average account age, impacting your credit history length

Let’s say you have three cards, each with a $5,000 limit. If you close one, your available credit drops by 33%, which can spike your utilization rate and knock your score down—even if your debt hasn’t changed.

What to Do Instead:

• Keep old accounts open, especially if they’re fee-free

• Use them occasionally (e.g., auto-pay a small bill) to keep them active

• Set calendar reminders to check in and prevent inactivity closure

📊 2. High Credit Utilization at the Wrong Time of Month

You may be paying your balance in full every month—but if your credit card reports a high balance to the bureaus before you pay, your utilization ratio will look sky-high on paper.

Why It Hurts:

• Credit utilization makes up 30% of your FICO score

• Even temporary spikes in balance can drop your score

• Bureaus typically get the balance at the statement closing date, not your due date

A score drop of 20–40 points for a single high-reporting month isn’t uncommon—even if you pay it all off days later.

What to Do Instead:

• Pay early—before the statement closing date

• Make multiple small payments each month to keep your balance low

• Monitor your reported balance using a free credit monitoring app

🧾 3. Applying for “Too Much” Credit in a Short Period

It might seem smart to shop around for the best credit cards or loans—but too many applications in a short window can make you look risky to lenders.

Why It Hurts:

• Every hard inquiry can drop your score by 5–10 points

• Multiple inquiries can stack up, especially if spaced out

• Lenders may view it as desperation or overextension

While FICO does group inquiries for things like mortgages or auto loans, that rule doesn’t apply to credit card applications.

What to Do Instead:

• Use prequalification tools that use soft pulls

• Space out new applications by at least 3–6 months

• Only apply when you truly need credit or will use it strategically

📂 4. Having Too Few or Only One Type of Credit

You might be surprised to learn that not having enough credit types can work against you. If you only have one credit card—or just one type of credit account—you’re missing a scoring opportunity.

Why It Hurts:

• “Credit mix” makes up 10% of your credit score

• Having both revolving (credit cards) and installment (loans) shows you can manage different credit forms

• Lenders prefer seeing a history of multiple credit behaviors

Someone with just one card might be lower-scoring than someone with a small personal loan and a responsibly managed credit card.

What to Do Instead:

• Consider adding a credit-builder loan, secured card, or store card

• Use responsibly and keep utilization low

• Don’t open accounts just for the mix—but diversify gradually if possible

📞 5. Ignoring Small Bills That Can Go to Collections

Not every bill shows up on your credit report—until it goes to collections. That forgotten $40 utility bill or an old parking ticket can end up being reported as a delinquent collection account months later.

Why It Hurts:

• Collections can drop your score by over 100 points, depending on your profile

• Even small-dollar accounts can have a big impact

• Medical bills now have limited reporting impact, but others still count

Collections stick around for seven years—even after you pay them.

What to Do Instead:

• Monitor mail and email for any unpaid bills or surprise invoices

• Use a bill management app or set up calendar reminders

• Check your credit report for any unknown collections and dispute errors

📘 Final Thought: Protect Your Credit By Watching the Quiet Risks

It’s easy to focus on the obvious threats to your credit score—but often, it’s the quiet, unintentional habits that do the most damage. Closing old cards, maxing out mid-cycle, or forgetting small bills might seem harmless—but together, they can chip away at your progress and slow your climb toward better credit.

By being proactive and informed, you can sidestep these invisible traps and create a credit profile that reflects your true financial discipline. Protect your progress. Adjust your habits. And remember—credit success isn’t just about what you do, but also what you avoid.