Your credit score is a vital cog in the wheel of financial stability. Not only does it define your creditworthiness, but it also plays an important role in making a deal with your next lender. 

While it is a well-known fact that defaulting on credit payments leads to a deterioration in your score, there are also a few other things to consider.

These are the parameters that also play a role in determining your final FICO Score. If your payments are prompt and your score is still dropping, be sure to read the guide below to learn more.

3 Main Things That Negatively Affect Credit Debt

Credit Utilization

Let’s begin with the utilization aspect. Even though companies are always ready to give you more credit power or increase your limit, they do not really want you to use that limit. 

Yes, if you are using your credit limit to the highest extreme, it gives out a red flag to the creditors and makes them think that you are too dependent on the credit. 

This backstabbing behavior follows even after you’ve kept up with the payments. To everyone’s surprise, credit utilization is weighted at 30% for calculating credit score. 

Credit Age

Credit age is also a defining factor that can negatively affect your score. The older the credit account – the better the credit score will be and vice versa. 

The rationale behind this structure is that an older credit account has more stability and repayment schedules. Younger credit age means that the individual has recently acquired a new card or there may be have made mistakes in their past accounts. 

Other than this, credit age is evaluated under two heads, which are as follows. The age of the oldest account is important because it implies higher security of credit. And the other is an average credit age calculated after combining your accounts.

Asking for Credit Repeatedly 

In the US, you are entitled to get one free credit report by your creditor every twelve months. This free report won’t affect your score.

But if you frequently request a report from different creditors, they generate your credit report from their end. With successive credit score requests on your account, you are on the way to lose your credibility in front of the lenders. 

This gives the impression that you have asked for credit multiple times from different vendors, but to no gain. So, in the lender’s eyes, your profile becomes a risk, which they do not wish to bet on. 

Not Having a Credit Mix 

Credit mix symbolizes your ability to handle several credit accounts. Do not get confused with handling various accounts and applying for different credit accounts. 

While credit mix is the indicator of your efficiency to handle credit, applying for several credit limits shows an inability to get credit lines from lenders. 

What’s more, credit mix has a 10% weightage for identifying your credit score. FICO states that account holders that have a good credit mix are not taken as a risk by lenders. 

On the contrary, not having a credit mix can affect your score negatively, as it also shows your inefficiency to handle credit. 

3 Main Things That Negatively Affect Credit Debt


These are three most important factors that can negatively affect your credit debt. And if you are looking to improve your credit debt, then reverse these points and follow the opposite trends listed in the above-given points. 

Abhorring from these practices will not only improve your credit score, but will also lead to an increment in your credit limits. Lenders are always happy with the accounts that are an asset to them and not a risk.