Are You Hurting Your Credit Without Realizing It? Common Mistakes Explained.
The information given in this blog and/or any of our videos is not intended to give financial advice. The primary purpose of this podcast is to educate and inform. This information should not be construed as advice.
Credit can affect far more than whether you qualify for a credit card.
Your credit history may influence your ability to buy a home, finance a car, rent a place, qualify for certain interest rates, and access other financial options. Yet many people were never taught what a credit score actually measures, what appears on a credit report, or how everyday financial decisions can change both.
On Make Dollars Make Sense, MOMnation founder and Team EvoAZ at eXp Realty Associate Broker Katie Halle Lambert sat down with co-hosts Trudi Kayser and Jenn Stone for a practical conversation about understanding credit scores, reviewing credit reports, avoiding common credit mistakes, and helping kids build healthier money habits early.
The goal was not to make credit feel scarier. It was to make the rules easier to understand.
What a Credit Score Actually Tells Lenders
A credit score is essentially a number that gives lenders a snapshot of how someone has handled borrowed money.
As Trudi explained, it does not define whether someone is responsible in every area of life, how hard they work, or what kind of person they are. It reflects credit-related information such as whether payments are made on time, how much debt someone is carrying, how long they have had credit, and other borrowing patterns.
That distinction matters.
Your credit score is not a measure of your worth, but it can affect the financial options available to you.
During the conversation, the group discussed how credit may come into play with borrowing, housing, interest rates, insurance, and, in some circumstances, employment-related decisions.
Understanding the score is only part of the picture, though. The information behind it matters just as much.
Credit Score vs. Credit Report: Why You Need to Look at Both
Jenn described the difference simply: your credit report is the paper trail, while your credit score is the grade that comes from that paper trail.
A credit report can include information such as:
Credit cards and loans
Account balances
Payment history
Collections
Credit inquiries
Personal identifying information
Looking only at the score can mean missing something important.
Mistakes can appear on credit reports. Katie gave the example of information being confused between people with similar names, such as family members who share the same name but use designations like Junior and Senior.
Jenn also shared a much more serious personal experience. When she went to purchase a car years ago, she discovered that her identity had been stolen long before she realized it. Accounts and other activity had appeared under her information, and cleaning everything up took approximately two years.
Her experience became a strong reminder that monitoring the report itself can help uncover problems that a single score may not explain.
The group recommended reviewing your credit report through annualcreditreport.com and looking for unfamiliar accounts, incorrect late payments, unexpected balances, collections you did not know about, old accounts, or personal information that does not belong to you.
Common Credit Score Mistakes Can Happen During Ordinary Life
Some of the biggest credit score mistakes are not dramatic financial decisions. They can happen while handling everyday expenses.
Late payments were one of the first examples discussed. Even when a payment is missed because life became busy or someone thought autopay had been set up, the late payment can still matter.
High credit card balances can also affect how lenders view your financial situation. The group used the example of carrying a $4,800 balance on a card with a $5,000 limit. Even if payments are being made, using most of the available credit may make someone appear financially stretched.
Other decisions discussed included:
Applying for several new accounts
Closing older credit cards
Co-signing for someone else's debt
Making major credit changes before a large purchase
Financing furniture or opening a new store card while preparing to buy a home
The homebuying example especially resonated with Katie because buyers can become excited about a future home and start purchasing furniture before the transaction is complete.
That excitement can create problems if new debt changes the financial picture a lender originally reviewed.
The group's advice was straightforward: before making significant changes involving credit during the homebuying process, talk with your lender or real estate professional first.
Closing an Old Credit Card May Have Consequences You Did Not Expect
Closing an account can feel responsible, especially when you are trying to simplify your finances.
But Jenn shared how one decision that seemed helpful at the time had an unexpected effect.
Years ago, she entered a credit consolidation program while dealing with about $8,000 in debt. After completing the program and paying everything off over several years, the cards involved were closed. She later had to rebuild her credit history.
The conversation highlighted why the age of credit accounts can matter. An older account may be part of the history lenders use when evaluating how someone has managed credit over time.
That does not mean every old account should always remain open in every situation. It does mean that closing an account is worth understanding before making the move.
Credit Protection Matters Because Fraud Can Happen to Careful People
The discussion also touched on identity theft and credit protection.
Jenn's experience began after identification and other belongings were stolen from her vehicle while she briefly went inside to pick up her children. Years later, she learned how extensively that information had been misused.
The group discussed tools consumers may consider, including freezing credit with Experian, TransUnion, and Equifax to make it more difficult for someone to open new credit in their name.
Jenn also mentioned using Kroll for monitoring after having experienced fraud.
Katie shared that she had dealt with fraud as well, reinforcing the point that these situations can happen even when someone generally considers themselves careful.
The larger takeaway was not to live in fear of identity theft. It was to pay attention to what appears on your credit and investigate information that does not look right.
Teaching Kids About Credit Before They Need It
One of the most useful parts of understanding credit as a parent is being able to explain it to your kids.
Trudi and Jenn emphasized a simple starting point: credit is borrowed money, not free money.
If a child borrows $20 and promises to repay it on Friday, the lesson is not terribly different from what lenders are watching. Did the person follow through on the agreement?
Parents can begin teaching kids and teens to:
Repay borrowed money when promised
Avoid borrowing more than they can handle
Understand that interest can make purchases cost more
See a credit card as a financial tool rather than extra income
They also encouraged moms to make normal money conversations more visible at home.
That might sound like, "We're saving for this," "We're paying this off before buying something else," or "We're checking the interest rate before deciding."
These conversations allow kids to see financial decision-making as a normal part of life rather than something secret, embarrassing, or frightening.
Katie shared how she used a real-life purchase to teach her son this lesson. When he wanted an iPad, she required him to cover part of the cost. Because he did not have the full amount available at once, they created their own payment agreement.
He made scheduled weekly payments until the amount was paid off. Katie chose not to charge him interest, but they discussed what interest was and how it would normally affect borrowing.
It gave him an opportunity to practice consistency and understand that committing to a payment means prioritizing that payment even when something else looks more fun to buy.
Understanding Credit Can Give You More Financial Options
Credit does not have to remain a mysterious financial system that you only think about when applying for something.
When you understand what affects your credit score, what information appears on your credit report, and what financial moves deserve extra consideration, it becomes easier to make informed choices.
One resource recommended during the conversation was Color My Credit by Alyssa Glutz. Trudi and Jenn appreciated the book's focus on understanding what is actually happening inside a credit report rather than treating credit as something shameful or intimidating.
That same idea sits at the heart of Make Dollars Make Sense.
You cannot change financial decisions you made in the past, but you can look at the information you have now and decide what your next step should be.
And once moms understand these concepts themselves, they can start giving their children financial lessons many adults wish they had learned much earlier.
🎧 Watch the Make Dollar Make Sense Conversation 🎧
Watch the full conversation to hear Katie Halle Lambert, Trudi Kayser, and Jenn Stone explain credit scores and reports, share personal experiences with debt and identity theft, discuss homebuying credit mistakes, and offer practical ways to teach kids about borrowing and repayment.
💜 Connect With Trudi, Jenn and Katie💜
Connect with Trudi Kayser: https://www.facebook.com/trudi.kayser
Connect with Jenn Stone: https://www.facebook.com/jenn.stone.31
Connect with Katie Halle Lambert: https://www.katiehallelambert.com/
If you know a mom who could use more clarity and confidence around money, send this conversation her way.
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Financial Disclaimer: The information shared in this article and podcast is not intended to provide financial advice. The primary purpose is to educate and inform. This information should not be construed as individualized advice. Please consult your attorney, CPA, real estate agent, wealth manager, or other qualified professional before making financial decisions.
