Protect Your Credit Score Against More Damage

Just because your credit score has dropped a little doesn't mean it has to plummet. Credit scores range from 300 to 850. Bad credit starts around 620, but there are many scores between 300 and 620. At 620, you still have some hope of getting approved for credit, you may have to pay a higher interest rate or accept a credit card with a high annual fee. However, when your credit score reaches the 300s and 400s, it will be close to impossible to find a lender that's willing to give you a credit card or a company who'll approve you without requiring a security deposit. Here are a few ways you can keep your credit score from falling even lower than it already has.

Stay current on the credit cards that are in good standing. There may be just one or two debts you can't afford to pay. If you decide to let those accounts go, don't let your others go, too. Keep making payments on the accounts you can afford to pay and those positive payments will help keep your credit score from dropping to the absolute lowest.

Remember that late payments don't get reported to the credit bureau until they're 30 days past due. If you miss a payment by just a few days, don't wait until your next bill comes to get caught up. Instead, send your payment as soon as you can afford to. You'll have to pay a late fee, but at least the late payment won't go on your credit report.

Avoid taking out cash advances. Often people face credit problems when they're short on cash and don't have enough money to make ends meet. In that case, you may be tempted to take out a cash advance and use it to pay expenses or even to make your credit card payment. It's a bad idea and a risky transaction. Unlike credit card purchases, cash advances have a fee, accrue interest at a higher rate, and do not have a grace period. They're one of the worst types of transaction to make on a credit card.

Don't apply for credit out of desperation. If you have bad credit already, chances are you'll be denied for new credit card applications. Continuing to apply for credit hoping you'll finally be approved will backfire. Credit card issuers are suspicious of consumers who apply for a lot of credit cards in a short period of time, so they may deny you just because of all the applications you're putting in. Not only that, the extra inquiries will have a negative impact on your credit score.

Your credit may have suffered a little, that doesn't mean it has to suffer a lot. Protecting the credit score you do have will make it easier to get to a better credit score. There's only 100 points standing between a 620 credit score and a 720 credit score. On the other hand, there's 300 points between a 420 and a 720.