2. Not checking credit report on regular basis: Everyone is entitled to get each of their credit reports for free once a year. Financial experts always suggest you to pull one credit report every few months through annualcreditreport.com. Your credit report will give you an overview of what is right and what is wrong and it will also show you the area you need to focus on. It will also ensure that any newly introduced errors get quickly corrected. An error in your credit report can hurt your credit score.

3. Co-signing loan for a family member or friend: She/he is my best friend why can’t I co-sign a on his/her behalf? Today most of the people have this question in their mind.  Co-signing a loan or a credit card is one of the dangerous things that can hurt your credit score badly. The drawback of co-signing is that the status of the loan you signed for your friend or relative will appear on your credit report. In addition to that if unfortunately your co-signee has a habit of making late payments or carrying a high balance, then that can negatively impact your score. Also, there is no such rule that bank will inform you about that so you cannot blame the bank too. If your co-signee defaults entirely, you are the one who is legally responsible for paying off the loan.

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