Top 5 Mistakes That Can Ruin Your Credit Score in 2025

Your credit score plays a crucial role in your financial life. It affects your ability to get approved for loans, credit cards, and even rental applications. In 2025, credit scoring models are smarter than ever — and the smallest mistake can cost you big. Here are the top 5 mistakes you must avoid.

1. Missing or Late Payments

Payment history accounts for the largest portion of your credit score. A single missed payment can drop your score by 50 points or more. Always set reminders or automate your payments to stay on track.

2. Maxing Out Your Credit Cards

Using too much of your available credit (also known as credit utilization) signals risk to lenders. Try to keep your usage below 30%, and ideally under 10% for the best scores.

3. Applying for Too Much Credit at Once

Each time you apply for a loan or card, a hard inquiry is added to your report. Too many inquiries in a short time can hurt your score and raise red flags.

4. Closing Old Credit Accounts

Your credit history length is important. Closing old or unused accounts can shorten your average credit age and negatively impact your score. If there's no fee, keep the card open.

5. Ignoring Your Credit Report

Mistakes happen — and identity theft is on the rise. Regularly check your credit reports from all three bureaus. You can request a free copy annually at annualcreditreport.com.

Final Thoughts

Building and maintaining a strong credit score takes time, but avoiding these five mistakes will keep you on the right track. Stay consistent, stay informed, and protect your financial future in 2025 and beyond.

Learn more: How to Build Credit Score from Scratch