🧨 Top 10 Mistakes That Can Ruin Your Credit Score – Avoid These to Secure Loans Easily
Published by: Vizzve Financial | May 2025
Category: Personal Finance | Credit Health | Loan Approval
Reading Time: 4 minutes
Maintaining a good credit score is crucial if you plan to apply for personal loans, home loans, or even a credit card. At Vizzve Financial, we’ve helped thousands of borrowers get easy approval by first helping them understand how credit scores work and what can go wrong.
Here are the top 10 common mistakes that can destroy your credit score – and what you should do instead.
🚫 Top 10 Credit Score Mistakes to Avoid
1. Missing or Delaying EMIs and Credit Card Payments
Even a single missed payment can reduce your credit score by 50–100 points.
✅ Solution: Set auto-debit reminders or use the Vizzve App to track EMI schedules.
2. Using Over 30% of Your Credit Limit
High credit utilization indicates financial stress to lenders.
✅ Solution: Keep your credit card spending under 30% of your total credit limit.
3. Applying for Too Many Loans at Once
Multiple hard inquiries signal desperation and lower your score.
✅ Solution: Check your eligibility with Vizzve’s soft-check system before applying.
4. Closing Old Credit Cards
Older accounts increase credit age, which boosts your score.
✅ Solution: Keep older cards active with small transactions.
5. Ignoring Credit Report Errors
Mistakes like duplicate accounts or wrong balances can pull your score down.
✅ Solution: Review your CIBIL report regularly and dispute errors through Vizzve's customer support.
6. Not Having Any Credit History
No credit history means no proof of repayment behaviour.
✅ Solution: Start with a secured credit card or a small personal loan from Vizzve.
7. Defaulting on Loan Settlements
"Settled" loans are seen as unpaid, not closed.
✅ Solution: Pay in full or ask Vizzve for structured repayment options.
8. Becoming a Loan Guarantor for Unreliable Borrowers
If they default, your credit score suffers too.
✅ Solution: Guarantee only for financially reliable individuals.
9. Frequent Job Changes or Address Updates Without Updates
Inconsistencies may raise red flags in your credit profile.
✅ Solution: Keep your KYC, PAN, Aadhaar, and job details updated with credit bureaus via Vizzve.
10. Taking Loans from Unregulated Lenders
These don’t help build your credit and can cause disputes.
✅ Solution: Borrow only from RBI-approved NBFCs and banks via Vizzve.
💡 Why Vizzve Financial?
✅ Get a free credit score check
✅ AI-based loan matching system – best offers from top NBFCs
✅ Pre-approved loans up to ₹5 Lakhs
✅ No paperwork. Fast disbursal. Trusted by lakhs.
👉 Apply now at www.vizzve.com
📌 Frequently Asked Questions (FAQs)
1. What is a good credit score for loan approval?
A score above 750 is considered good for most personal and business loans.
2. How much can one missed payment affect my credit score?
It can lower your score by 50–100 points depending on your credit history.
3. How can Vizzve help me improve my credit score?
We offer credit monitoring, EMI reminders, and low-interest personal loans that help build credit.
4. Does checking my own credit score reduce it?
No. Soft inquiries (like Vizzve’s tools) do not affect your score.
5. Can I get a loan with a low CIBIL score?
Yes, Vizzve offers low-score loan options with flexible terms.
6. Is it safe to use credit cards often?
Yes, but keep usage under 30% of your limit and pay on time.
7. Should I close old credit cards I don’t use?
No. Keep them open to boost your average credit age.
8. How often should I check my credit report?
Check once every 3 months or use Vizzve's real-time alerts.
9. What if I find an error on my credit report?
Dispute it immediately or raise a ticket through Vizzve.
10. How long does it take to improve a credit score?
With consistent repayment and low utilization, improvement can be seen in 3–6 months.
🎯 Final Word
Avoiding these common credit mistakes can save you years of financial stress. Whether you're looking for instant personal loans or want to rebuild your score, Vizzve Financial is your trusted partner.
🔗 Start your credit journey now: www.vizzve.com
📱 Or download the Vizzve App to get started in minutes.