BANGALORE:  One of the most important factors of your financial life is your credit score. Most of the financial institutions check the credit card scores before providing their customers with credit cards or loans. Some service providers use this to determine whether you should pay a security deposit. In order to decide on interest rate on the loan some car insurance providers will consider your credit score. But there are many people who knowingly or unknowingly destroy their credit score.

Here is the list of ways how people destroy their credit scores:

1. Closing old bank accounts: People mostly think that once they pay off the bills they can close their credit card account completely. They often think there is no need of an account if they have a credit card with them. But the actual fact is that you are likely to hurt your credit history and your utilization ratio, which weighs the amount of credit you have against the amount you are currently using.

The best way to avoid hurting your credit score is to set up the card to auto-pay one small bill and deduct the balance from your checking account every month. The benefit you will get is that you will have a low balance and a longer-running history too.

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