The concept of how certain sins that you commit and how it affects your life is present across all cultures. In fact, sins and redemption have been embedded in our public consciousness that from classic art works to movies. (remember the movie Se7en?).

Don’t look so grim, we have only extended this concept to your credit score, along with these ‘sins’ there are also countermeasures that would help you correct the sins. Read on and may angels guide you on your lofty quest!

#1. Being Late

Late payment is one of the most common mistakes that many make after taking a loan or using a credit card. Your credit score gets affected significantly when you fail to make payments on-time to the lenders. Delayed payments get registered in your credit report, making it difficult to get credit in the future. Hence, avoid defaulting your repayments in order to keep your credit score intact.

#2. Incorrectly Closing Your Credit Accounts

Though closing a credit card will not affect your credit score, incorrect closure of your credit card accounts will have a negative impact on your credit score. Clear all the dues on the card and obtain a NOC certificate from the lender after closing the credit card.

Similarly, if your loan is in a ‘written off’ or ‘settled’ status, it does not mean you have closed your loan. This status will reflect in your credit report, ruining your credit score. Clear the past dues to improve your credit score and subsequently become eligible for future loans and credit cards.

#3. Exceeding Your Credit Card Limit

Every credit card issuers set a credit limit on your credit card based on your eligibility and credit requirement. When you use more than what is allocated, you may end up hampering your credit score. it is always recommended to keep your credit utilisation ratio low to get a good credit score.

#4. Ignoring the Errors in Your Credit Report

Credit report is updated periodically by the credit bureaus based on the information provided the lenders. As there is a human work involved, there are chances for incorrect information to get updated. Any factual error or incorrect personal details could ruin your credit score. It is recommended to keep tabs on your credit report regularly.

#5. Applying for Too Many Credits within a Short Time

You might be in a need for funds to meet your immediate need. In desperation, you may tend to apply for a too many loans simultaneously. This is considered bad to your credit health and eventually hurt your credit score.

When you apply for a loan, the lender makes a hard enquiry which can affect your credit score. Too many hard enquiries will result in poor credit score.

#6. Paying Minimum Balance

Paying minimum balance on your credit card bill may help you manage immediate financial trouble. But continuous minimum balance payment could add up your debt and eventually sabotage your credit score.

#7. Becoming a Co-Signer

Co-signing a loan will have a potential threat to your credit score. Though there may not be any credit mistakes from your part, a default in payment by the main applicant can hurt your score as you are equally responsible for the repayment.

Too err is human and it is never too late to rectify your credit mistakes. Take action from the day your have identified your mistake and work on to improve your credit score.


Credit score is an important criterion which the lenders check before processing your loan and credit card application. Sometimes, it is difficult to figure out why your credit score is in a bad shape. If you are in such a state, you might have committed some of the common financial mistakes(or) that would have impacted your credit score negatively, but always remember there is always recourse.