Alex always took pride in being "good with money." He paid his bills, had a steady job, and never went over his credit limit. But when he applied for a mortgage for his dream townhouse, the loan officer delivered a shock: his credit score had plummeted.
The final blow was the A year ago, Alex moved and thought he’d cancelled his gym membership over the phone. He hadn't. The gym continued to bill him, the mail went to his old address, and eventually, the $40 "debt" was sold to a collections agency . That tiny, forgotten bill showed up as a massive red flag on his report. Common mistakes that may affect your credit score negatively
Second was the Even though Alex paid his balance in full every month, he had used 90% of his limit on one specific card to buy gifts in December. Even though he intended to pay it off, the bank reported that high credit utilization to the bureau before his payment went through. To the algorithms, it looked like Alex was suddenly desperate for cash. Alex always took pride in being "good with money