Many people unknowingly make credit mistakes that can damage their financial health. Missing payments is one of the biggest issues, as even a single late payment can lower your credit score. Maxing out credit cards increases credit utilization, making lenders see you as high-risk. Applying for too many new credit accounts in a short time leads to multiple hard inquiries, which can lower your score.

Closing old accounts may seem like a good idea, but it reduces your credit history length, impacting your score negatively. Ignoring your credit report can also be risky, as errors or fraud can go unnoticed. To build a strong financial future, always pay on time, keep balances low, and regularly review your credit report.