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by: JasonLancaster
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These days, keeping a good credit rating requires navigating a dangerous maze of credit cards, home equity loans, auto loans, and an uncertain health insurance system. Here's a list of the top dangers to your credit score, from easiest to hardest:

1. Closing your account:

Closing a credit card account lowers the amount of credit you have available, obviously. What's not as obvious is the effect this has on your credit rating, which can plummet as much as 100 points in only 2 months as a result of closing a credit account. Why? Because one of the most important factors in calculating credit score is your "percentage of credit available", and decreasing your available credit drops this score. Try to keep as much available credit as possible by using your card at least once a year on a small purchase to keep your account active. And remember, unless your card has an annual fee, do NOT cancel it!

2. Maxing out your credit cards:

Spending all the credit you`ve got is a danger sign to banks, who are looking for reassurance they'll get back the money they've lent out. A credit card with a high limit but low to no balance indicates a responsible consumer who is likely to repay debts. Maxing out your credit cards creates the impression you're spending more than you can afford to pay back, and drops your credit rating. The best remedy for this is to apply for more credit cards and request a higher limit for existing credit cards. Just take care not to spend this extra credit, or your rating will get worse!

3. Medical Debt Collections

Health insurance is not exactly known for its reliability - it's not uncommon for patients to receive a bill for something they think their health insurance covers, then discover their insurance company won't pay it. By then, the doctor's office has turned the debt over to collection, and your credit score has taken the damage. Protect yourself against this by checking every bill with both your doctor and insurance company to make sure it's paid. That extra bit of time you put in could save your credit score 50 points.

4. Co-signing:

Co-signing a loan for a friend or family member is sure to win you brownie points with them - but those points might be coming straight from your credit score! You are responsible for any loan you co-sign on, and if the bills aren't paid or your co-signer files for bankruptcy, your credit rating will decrease. Even if you can prove it's not your fault, or you haven't filed for bankruptcy yourself, your credit will still be affected. Be wary - don't co-sign for anyone unless you can afford to pay it off yourself.

5. Paying Bills Late

"Hey, my bills are getting paid. What's the harm if they're a little bit late?" Turns out, paying late can ruin an otherwise perfect credit score. Make sure your bills are paid on time by inquiring about and enrolling in your bank's automatic bill payment program. Your bank will automatically send your creditors a payment from your account every month, so you don't risk forgetting due dates, which can damage your credit rating and cost you hefty late fees.

About the Author

Author Jason Lancaster, an auto industry veteran, developed AccurateAutoAdvice.com. You'll find accurate auto advice and tips for buying a car.

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