5 Common Credit Mistakes Holding You Back — And How to Fix Them

Your credit score impacts almost everything: your ability to buy a home, qualify for business funding, secure a car loan, or even get approved for an apartment. Yet most people never learned how credit really works — and the mistakes that quietly hold them back for years.

Here are five of the most common credit mistakes we see at Flex Rise Consulting — and what you can do today to correct them.

1. Ignoring Errors on Your Credit Report

More than 1 in 3 credit reports contain errors, and many are severe enough to lower your score. These can include:

• Incorrect late payments

• Accounts that don’t belong to you

• Collections that should be removed

• Outdated personal information

How to fix it: Get a copy of your credit report from all three major bureaus. Review every account and dispute anything inaccurate using proper documentation.

2. Paying Only the Minimum Balance

Minimum payments keep your account "current" but not healthy. Your credit utilization (how much of your credit you use) is a major factor in your score.

If you’re constantly carrying high balances, your score will take a hit even if you never miss a payment.

Goal: Keep utilization under 30%, ideally under 10%.

3. Closing Old or Unused Accounts

You may think you’re “cleaning up,” but when you close old accounts, you shorten your credit history — which lowers your score.

Unless an account has fees or is hurting your report, keep it open for a longer, healthier credit history.

4. Ignoring Collections or Letting Them Age

A lot of people think collections “fall off” after seven years and that ignoring them is the best strategy.But even unpaid collections affect:

• mortgage approvals

• personal loans

• business funding

• certain employers

Better strategy: Validate, dispute, or negotiate properly — the right way.

5. Not Having a Long-Term Credit Strategy

Credit isn’t just about fixing problems — it’s about building a foundation.You need a roadmap for:

• building positive payment history

• adding the right accounts

• removing negative items

• preparing for funding or purchases

At Flex Rise Consulting, we create personalized credit strategies to help our clients build long-term financial confidence — not quick fixes.

Ready to build a better credit?

Flex Rise Consulting offers ethical, transparent, and strategic credit-building support designed to help you rise with purpose.

👉 Book a free consultation today.