What is one factor that can influence your credit score negatively?

One key factor that can negatively influence your credit score is multiple recent credit inquiries. Each time you apply for credit, lenders perform a hard inquiry on your credit report to assess your creditworthiness. While a single inquiry may have a minimal impact, multiple inquiries within a short period can signal to lenders that you may be overextending yourself financially or taking on too much debt, which can reduce your credit score. Credit scoring models typically consider inquiries over the past 12 months, and having too many can be perceived as a risky behavior.

In contrast, low credit utilization is beneficial as it indicates responsible credit management. A long credit history usually reflects good credit habits, contributing positively to your score. Lastly, having a diverse mix of credit can indicate to lenders that you can handle different types of credit responsibly, which is also a positive factor.