You ought to be aware of the fact that a good credit history and activity translates to a good score, and vice-versa. Notwithstanding your knowledge of this, I will explain to you in simple terms the common mistakes people make and how you can beat them.
Negligence in paying creditors loans they have given to you is a sign that you cannot be trusted to honor your word. No financial institution that is in the business for the sake of making profits wants this kind of behavior. Late payments, which is the cousin to missed payments, is another sure way of getting your financial profile into a mess. Creditors keep records and they will know when you default on any of the terms of the agreement you might have had with them. They take this information and communicate it to the information bureaus who will simply interpret it in figures on your report.
Making ceaseless credit applications is a signal that you are financially troubled. Imagine if you went from bank to bank every 4 or 5 months seeking loan approval. These banks will inform the bureaus of your visits and they in return will judge you based on these incessant visits to be in need of desperate cash. A financially desperate person is thought of to be a bad manager of money and nobody wants to have contracts with such person.
If you make such mistakes as the ones I explained above, your score will take a bad hit that you will definitely not like. The lower your score sinks, the more difficult it becomes for you to borrow money from creditors. You can’t blame them. They need to know that the person they are about to give a loan is financially reliable, and the only way they can do this is to buy a copy of your report from the information bureaus to know this.