Why Your Credit Score Stays Below 500: Habits Holding You Back & How to Fix Them

• Frequent missed or delayed payments are a primary cause for scores staying below 500, signaling unreliability to lenders.
• High credit utilization, consistently using over 30% of your credit limit, indicates financial stress and lowers your score.
• Ignoring old dues or settled accounts negatively impacts your credit report, even if they seem resolved.
• Applying for credit too often leads to multiple hard inquiries, suggesting desperation and further reducing your score.
• Lack of an active and healthy credit mix can also hinder score improvement, as lenders have no positive history to assess.

Why It Matters: Improve your credit score by addressing payment habits, utilization, old dues, and credit applications.