Shares Tips for Avoiding Damage to Credit Scores has published some hints to help consumers steer away from making mistakes that impact negatively on their credit scores.

Apr 22, 2013, 09:00 ET from

JACKSON, Mississippi, April 22, 2013 /PRNewswire/ --, the leading loan aggregator and consumer finance awareness site, has published some guidelines on safeguarding credit scores.

The decision has come after the announcement of a burgeoning alternative metric for calculating credit scores. The current system is provided by FICO but competitor VantageScore will be making available a new system that claims to be more beneficial to consumers. In the interim, wants to help consumers do what they can to preserve their FICO score. made the announcement in the following statement.

"We receive a lot of inquiries from individuals wanting to know why their credit scores do not improve. While credit score improvement is important, protecting what you already have is crucial. Consumers should take care to avoid behaviors and practices that unknowingly damage their credit scores. We would like to share some tips in order to raise awareness of the lesser known culprits of credit score reduction. Some will definitely raise surprises - we hope that all consumers learn something that they didn't know before and put the information to good active use."

Some of the ways that consumers damage their credit scores include, in order of the damage they cause:

  1. Cancelling a credit card account: Credit scores favor long credit history, so closing an account down works against this principle.
  2. Missing payments: Credit scoring methodology rewards positive reporting. Any negative reporting, such as missed payments, can wreak havoc on overall scores. Recent, severe and repeated missed payments are the most damaging.
  3. Settling with a lender on a past account: Even though a borrower has parted with some of the balance due as part of the settlement, the reporting system still shows this as a "negative" balance. Settled accounts remain on credit files for 7.5 years according to the FICO method of scoring that is currently in use.
  4. Excessive credit shopping: Multiple credit applications to individual lenders or financers significantly drag scores down. Making one application through allows your application to be considered by hundreds of lenders in one fell swoop without causing any unwanted reduction to credit scores.

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Ben Milo