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It wasn't that long ago when even those barely earning above the poverty level were courted by lavish offers by the credit card companies. In today's credit market, even the smallest blemish on your credit report may result in a bold 'not approved' stamp planted in the middle of your loan or credit application. These days, destroying your ability to get credit is about as easy as blowing out a birthday cake full of candles.

Closing Unused Credit Accounts
A sure way to see your credit score drop is by closing your available credit accounts. You may think you're cleaning after accounts that are just wasting away. But, when you close an account, your total amount of available credit drops ' a bad sign to credit reporting agencies that has a negative impact on the algorithms they use to calculate credit scores.

Part of your score is calculated by measuring the amount of debt against the credit limit. If your debt levels remain the same, lowering your available credit by closing active accounts will throw the ratio of debt to available credit off kilter. If you have only a few, low balance accounts, closing one can lower your score considerably.

The only time it is advisable to close an account is when an annual fee applies on an account that you no longer use. Furthermore, only recently opened accounts should be considered for closing. Length of credit history is an important component of the credit score. One expert suggests that the ideal credit customer has 20 years or more of credit experience.

Credit Cards Left to Collect Dust
Even if you don't personally close any credit accounts, your credit card company may close them for you. Accounts that are inactive or kept on the back burner for emergencies may be seen as a potential risk factor. A creditor may lower your credit limit or completely close the account. Also, if an open account is unused for a long enough period of time, the company can stop reporting it to the credit bureaus, negating any possible contribution to your credit score.

The fact that the creditor took action to close the account is also noted on your credit report. It would be better if you're not going to use an account to either close it to use their cards periodically.

Running Up High Ongoing Balances
Even more negative attention is drawn when you use too much credit. Excellent credit scores are the result of lots of credit that is not used too much or too little, with low balances on several cards rather than one large balance. For example, charging $6,000 one month and paying it off followed by a charge of  $10,000 the next and paying it off, will not be recognized responsible credit management It will only see that you are constantly carrying a large balance.

Apply for New Credit Too Often
New credit accounts lower the average age of your credit history; and as stated above, a lengthy credit history is a positive attribute of a healthy credit score. Every time you apply for a credit card, a hard inquiry is posted on your credit report as opposed to a soft inquiry which is posted when you request a copy of your report. Hard inquiries in themselves are not the problem; it's multiple inquiries in a short period of time that is a concern to creditors ' giving the appearance of desperation or other troubles.

This is not to say that you shouldn't be a smart shopper. Responsible consumers will consider several offers before buying a car or signing for mortgage. Your credit score will not be impacted within a 45-day window while you have auto lenders and mortgage companies inquire about your credit report.

Renege on Debt Responsibilities
Perhaps the easiest way to destroy your credit is by skipping out on debt you owe. Paying late or not at all will ensure that your credit score drops like a rock. How recently the late payment was made, how late and the frequency of late payments effect how much damage will be incurred.

Ignoring an overdue book fine at the library may hurt more than losing your book-borrowing privileges. It actually can negatively impact your credit score, as can other seemingly meaningless hassles, such as parking tickets. Many of your daily transactions are not reported to the credit reporting agencies, but these same businesses may send your past due account to collections, resulting in negative reports.

One example is the commonly held opinion that cell phone accounts don't affect your credit report. But that's just not the case. You may not see a positive report about paying your phone bill on time, but renege on paying that bill and it will eventually be sent to a collection agency who will report the past due debt.

Ignore Credit Report Mistakes
Mistakes on your credit report need to be addressed as soon as they are noticed. Many errors are easily remedied and are simple errors of misreporting. Credit reporting bureaus are required to take action on any requests made that question an entry.

Building and maintaining an excellent credit history is particularly important in a struggling economy. When lenders are lowering their approval numbers, a great credit score will improve your chances to get the credit you need.