Credit Mistakes That Can Impact Your Credit Score

TAMPA, FL --We all know that not paying your credit card bills on time can impact your credit score.

"If you pay 30 days late, the banks see that as a problem, if you pay 60 days late they see that as a bigger problem, and obviously if you pay later than that the banks will start closing the accounts," said Harold Stephens, Vice President, Consumer Credit Counseling.

When banks start closing accounts your credit score can suffer, some consumers have seen banks lower their credit limits as well.

"If you had a thousand dollar credit limit and they lowered it to say, $500, that can affect your credit as well," said Rachelle Arnold, Consumer.

"The credit card companies won't tell you if they're going to change your credit card limits, they'll just send you something the mail, they're also changing the cash advance fees that they charge," said Seth Kruger, Consumer

Credit counselors advise consumers to check their credit reports often for inaccuracies in the reports, but your credit scores are now being used for more than granting credit.

"I work for the government and you have to good credit to get a secret clearance, I just found that out at work yesterday," Arnold said.

Maxing out your credit cards can have a dramatic effect on your credit scores.

"Overutilization of credit happens when you have five or ten credit cards and you start making them out, then the banks become concerned about your ability to pay," Stephens said.

The bottom line is that using your credit cards responsibly can have a huge impact on your life.