Credit has become more difficult to come by as lenders look for consumers who pose the least risk - in other words, consumers will the highest credit scores. Even the smallest infraction may mean a denial for an important loan or line of credit. Actions that can negatively impact or destroy your credit may seem obvious, but there are some not so obvious ones that you should be aware.

1. Closing Credit Accounts No Longer Used
Many people make the wrong assumption that closing accounts will tie up loose ends in their finance portfolio. But in affect it eliminates some of their overall available credit, a vital component of credit score calculations and a bad sign to credit reporting bureaus. If your total credit limit drops as your debt rises or even remains the same, the ratio of debt to available credit is thrown off kilter. In other words, closing an account can lower your credit score considerably.

There is only one exception to the ‘don’t close’ rule. If an annual fee is charged on an account that you no longer use, it may be reasonable to close it. Older credit accounts have more value to your credit score than newer ones. So if you do choose to close an account, choose the newest, if possible.

2. Inactive Accounts Vulnerable to Closing
Make a small purchase on every open credit account to prevent unintentional closing. Even if you opt to keep inactive account open, as suggested above, the card issuer may choose to close it in an effort to eliminate risk factors. Another thing to consider regarding your credit score is that an unused account may no longer be reported to the credit reporting agencies – in effect, negating any positive impact to your credit score. In addition, if a lender closes an account, it will be noted on your credit report and seen in a negative light.

3. Using More than Half of Credit Limit
Red flags are raised when a large amount of your credit limit has been spent. An excellent credit score comes partly in response to a balance of credit used against available credit. Too much credit may be seen as desperation by a consumer in financial trouble. Keep your debt under fifty percent.

4. Applying for Credit Too Often
When you apply for a loan or credit, a hard inquiry is posted to your credit report. Too many hard inquiries in a short period of time are considered risky behavior. So go ahead a comparison shop, but don’t apply for more than a few offers to avoid the appearance of financial trouble. In addition, too many new accounts will lower the average age of your credit history, which minimizes your score.

5. Defaulting on Financial Responsibilities
Perhaps the most obvious way to see your credit score drop like a rock is by skipping out on the debt you owe. How late and the frequency of late payments effect how much damage will be done. Daily transactions are not always reported to the credit reporting bureaus, but if those same accounts are sent to a collection agency, a default posting will be reported. For example, your cell phone payments may not be reported if you pay on time, but default on the bill and the past due will be reported.

6. Ignoring Credit Report Errors
Allowing discrepancies and errors to remain on your credit report will mean a lower score than you deserve. Many errors are easily remedied and are simple errors of misreporting and should be addressed as soon as they are noticed. Credit reporting bureaus are required to take action on any requests made that question an entry.

For anyone who hopes to own a home or a new car, building and maintaining an excellent credit score is absolutely imperative. With responsible financial management a great credit score will be in your future.