Finances
Financial missteps that can affect your credit score
The importance of a good credit score cannot be overstated. Adults who handle credit responsibly may save tens of thousands of dollars in interest charges over the course of their lives, as a strong credit history helps to elevate credit scores. The higher an applicant’ s credit score, the more favorable loan terms for big-ticket items like vehicles and homes will be.
Though the significance of a strong credit history is a lesson in financial literacy emphasized to many people as early as adolescence, it’ s still easy to make some mistakes along the way. Many people’ s first encounter with credit comes around the age of 18, a point in time when young men and women may not recognize the gravity of their financial decisions.
That makes it easy to fall into some bad habits that can unfortunately have a long-term, negative impact on individuals’ financial futures. The following are some common credit missteps that consumers can look to avoid as they seek to build strong credit histories.
• Missed payments: The credit reporting agency Equifax ® notes that even a single late or missed payment can lower a person’ s credit score. Though it’ s always best to set up automatic payments so no payment is ever missed, those who haven’ t taken advantage
32 • SEKY- Southeast Kentucky Life July-August 2026