Closing an old credit card account
While canceling a long-held but seldom-used account may seem responsible, it will shorten the length of your credit history, which can lower your score. If you feel like decluttering your wallet, nix a few of your more recently acquired cards, and hang on to the oldest one you’ve got—that long credit history will serve you well in the long run.
Financing that new bedroom set
If a local business offers to let you finance a purchase, think twice before accepting. The bank may consider it a “last resort” loan, which is a huge red flag for higher credit risk. Even with 0 percent financing deals, stores often open a credit card that they use to pay for that big purchase—but that card gets maxed out, affecting the “utilization” percentage that makes up 30 percent of your credit score, CBS News reports. Here are 11 tricks for improving your credit score.