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Think you have it together when it comes to your credit score? Well, you may be missing some key actions that can have a negative impact on your otherwise-spotless credit score:

• Opening too many accounts in a short period – Although opening a new credit card account certainly won’t damage your credit score, opening two or three could. If a lender notices that you have been opening many accounts or lines of credit in a short period of time, it may raise a red flag that you are in financial trouble.
• Selling your home through a short sale – Although many homeowners are told that a short sale won’t hurt their credit score, the truth of the matter is that the loan is reported to the credit reporting agencies as a “settled” loan. In other words, a short sale is just as bad in the eyes of the credit reporting agencies as a foreclosure.
• Signing for someone else’s loan – Although you may think you’re simply doing a good deed for a friend or family member by helping them obtain credit, the truth is that this debt goes directly onto your credit score, thereby raising your debt amount and lowering your chances of getting the best rate for any number of things, such as a car loan or a mortgage.
• Paying only the minimum balance – Although it may seem like you’re doing the best thing by paying on your card each month, paying just the minimum balance could raise a red flag with a potential lender because it may signal that you’re under financial stress. In other words, the chances of getting approved for more credit are unlikely because many lenders view your financial health as shaky.
• Taking out a cash advance – If there is one bit of good advice to remember when it comes to your credit card it is: Avoid cash advances at all costs! If you are in an emergency situation and you absolutely must get your hands on cash, then by all means use it. But don’t use a cash advance as simply a way to get easy cash! Cash advances are not viewed favorably in the eyes of the credit reporting agencies and lenders, so it is best to always avoid them.

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Tags: Credit Score, Negative Impact, Score