Credit Score Dropping? 9 Hidden Mistakes + 1 Easy Fix

Your credit score is one of the most important numbers in your financial life—it affects your ability to get loans, credit cards, and even rent an apartment. While most people know that late payments hurt their score, many hidden habits silently drag it down without them realizing it.

But here’s the good news: If you rent your home, services like AxcessRent can help boost your credit by reporting your on-time rent payments to credit bureaus!

In this blog, we’ll uncover 10 surprising habits that could be lowering your credit score starting with the most obvious but often overlooked one—and how rent reporting can actually improve it.

1. Late or Missed Payments (The Biggest Credit Killer)

Payment history makes up 35% of your FICO score, making this the single most damaging habit. Just one 30-day late payment can drop your score by 100+ points.

✅ Fix It:

• Set up automatic payments for bills
• Use calendar reminders for due dates
• Negotiate with lenders if you’re struggling

💡 How Rent Reporting Helps: AxcessRent reports your on-time rent payments, adding positive payment history to offset any past late payments.

2. Closing Old Credit Cards (Hurts Your Credit History)

Many people think closing unused credit cards is a smart move, but it can backfire by:

• Shortening your credit history (15% of your FICO score)
• Increasing your credit utilization ratio (less available credit = higher usage percentage)

✅ Fix It: Keep old accounts open, especially if they have no annual fee.

💡 AxcessRent can add positive rental payment history to your credit report, strengthening your credit score profile.

3. Applying for Multiple Credit Cards at Once (Too Many Hard Inquiries)

Each credit application triggers a hard inquiry, which can drop your score by a few points. Multiple applications in a short time make you look risky.

✅ Fix It: Space out credit applications by 6+ months.

4. Ignoring Small Unpaid Balances (They Can Go to Collections)

Even a $20 unpaid bill (like a forgotten gym membership or medical bill) can be sent to collections, crushing your credit.

✅ Fix It: Check your credit report for unknown debts and settle them ASAP.

💡Positive rent payments can offset past negatives by showing consistent, responsible payment behavior.

5. Maxing Out Credit Cards (High Credit Utilization)

Using more than 30% of your credit limit hurts your score—even if you pay it off later.

✅ Fix It: Keep balances low and pay early.

💡Since rent isn’t a revolving debt, it doesn’t affect your credit utilization, making it a smart way to build credit without risk.

6. Not Checking Your Credit Report for Errors

1 in 5 credit reports has errors—like incorrect late payments or accounts that aren’t yours.

✅ Fix It: Check your free reports at axcessRent and dispute mistakes.

💡 How Rent Reporting Helps: Rent payments add verifiable positive data, making errors less impactful.

7. Using Too Much of a Single Credit Line

Maxing out one card (even if others are low) can still hurt you.

✅ Fix It: Spread spending across cards or request a limit increase.

8. Letting Accounts Go to Collections

Unpaid bills (medical, utilities, parking tickets) can tank your score if sent to collections.

✅ Fix It: Negotiate payment plans before they escalate.

9. Only Making Minimum Payments (Keeps Balances High)

Paying just the minimum keeps your credit score utilization high, even if you’re not late.

✅ Fix It: Pay more than the minimum whenever possible.

Final Thoughts: Use Rent Reporting to Build Credit Smarter

If you’re a renter, AxcessRent can help turn your rent payments into credit-score-building opportunities—without the risks of credit cards or loans.

Why Rent Reporting with AxcessRent?

✔ No hard inquiries (unlike credit applications)
✔ No debt or utilization risk (rent isn’t revolving credit)
✔ Counts toward payment history (35% of your score!)
✔ Helps offset past credit mistakes

By avoiding these 10 hidden credit score killers and leveraging rent reporting, you can build a stronger credit profile starting with the rent you’re already paying!