5 Credit Mistakes People Make—and How to Fix Them

Your credit score can affect nearly every part of your financial life. But even responsible people can fall into traps that damage their credit without realizing it. Let’s walk through the five most common credit mistakes we see—and how to fix them.

1. Ignoring Medical Collections

Medical debt is one of the most common causes of negative marks on credit reports. Many people assume insurance will cover everything or don’t realize an unpaid bill has gone to collections.

Fix:

  • Review all medical bills for accuracy

  • Dispute debts that aren’t yours or are inaccurately reported

  • Work with providers on payment plans before they go to collections

2. Making Late Payments—Even Small Ones

A single late payment can stay on your report for up to seven years and drop your score significantly. This includes small accounts like store cards or subscriptions.

Fix:

  • Set up autopay or reminders

  • If you’ve already missed a payment, contact the creditor to see if they’ll remove the late mark as a courtesy (especially if it's your first offense)

3. Closing Old Credit Cards

It might seem responsible to close old, unused cards, but doing so can lower your average account age and reduce your total available credit—both of which can hurt your score.

Fix:

  • Keep old cards open with zero balances

  • Use them occasionally for small purchases to keep them active

4. Maxing Out Credit Limits

Even if you pay your balance off each month, running up your card to the limit can hurt your credit utilization ratio—a major factor in your score.

Fix:

  • Keep balances below 30% of your total credit limit

  • Ask for credit line increases to reduce utilization without taking on more debt

5. Not Monitoring Your Credit

Many people only check their credit when applying for a major loan—but by then, it may be too late to fix surprises.

Fix:

  • Check your credit reports regularly (you can get a free report annually from each bureau at AnnualCreditReport.com)

  • Consider signing up for credit monitoring services that alert you to changes or suspicious activity

You Don’t Have to Fix It Alone

If you've made any of these mistakes, don’t panic—you're far from alone, and these issues can be fixed. At Credit Done Right, we work with people across the country to identify credit problems and create a personalized plan to address them.

Ready to turn your credit around? Contact us today for a free consultation—we’re here to help you take control of your financial future.

Megan Coleman