When you talk about credit score, you talk about the king of the money world.  It drives the destiny of the financial lives and decides the success and failure of attainment of financial products. However, what makes this king angry? Is it a mistake? Careless attitude? Or something that is not even in our control? Well, as the questions are many, the answer seems to be multi-faceted.

Some factors are not good and cause a degrade in credit score. What are they? Read them here –

Max out credit cards and the credit score drops with maximum speed

If you max out credit cards, you mess with your financial well-being, and it is suicidal for your future goals. The high interest rates of the credit cards and the habit of taking them above the set limits pull you in the debt trap. Besides, missing even a single payment opens the door to the journey that ends with the destruction of credit score. A threat is always there, do not take your credit card beyond its maximum limit, you will regret.

Divorced but still in mutual financial commitments

Divorced couples should know that any mutual financial commitment affects the credit score of both persons. Suppose you have a joint bank account even after divorce and the account has no minimum balance, you both can experience a credit score fall. The moment you separate from your partner, make sure there is no common connection on the part of finances.

Paying the minimum instalment amount on debts

Do you think you play smart when you pay a minimum amount on your debts?  Sorry then, it is a foolish thing to do and degrades your credit score performance. Paying the minimum includes more the interest rate part of the debt and the major part of the principal remains pending. As a result, it keeps adding on in the coming months, and the rate of interest adds in the debt burden. It is something that the finance companies do not like, and they report it as it is to the credit reference agencies. It also severely affects your creditworthiness because the money world can see, a person who is not able to make full repayments, how can manage the new obligations.

The above mistakes are destructive and it is better to avoid them and stay cautious about what you do with personal finances.


Your credit score is a collective version of many other factors. It is not just a number but a reflection of varied conditions in your financial life. Have a look at the construction of your credit score.

  • Payment history – Record of bill payments
  • Credit mix  – a mix of the short-term and long term credit
  • Length of credit – longer the credit record better is the score
  • New accounts and credit applications.

If you want a good credit score, you need to make the balance of all the above elements. If you do not know how to do that, a financial advisor can help you understand the calculations behind it. A smart and mature person always knows what to do and what to avoid.


A person can play safely in finances and credit score performance only if he/she knows about the facts mentioned in the points above. In short, financial literacy helps in making correct decisions. Next time when you take a step; do not forget to consider these points.

After corona pandemic, the financial lives are in strain on a big scale, and the mistakes mentioned above are acting severely. Make sure you do not make them. Many are under the worst credit situation, and they are seeking for very bad credit loans offered by the direct lenders in the UK to revive from the mess. The best way is, own money and debt management skills and you will always win.

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