HONOLULU -- How important is one's credit score?

KITV's Smart Tips for Fighting Back took a look at what a person's credit score means for their financial independence.

A higher credit score means a person will receive a lower interest rate on loans, while a lower credit score will bring lower credit limits and denied loan applications, Smart Tips for Fighting Back reported.

Officials said there are five ways to ruin a person's credit score:

• Missing a payment:
  Payment history accounts for 35 percent of a person's credit score, and even one late payment can cause a drop in his or her score.
• Maxed-out credit cards:
  A person's ratio of debt to available credit accounts for one-third of his or her score, officials said. They said a person should not owe more than 30 percent of a person's credit limit.
• Opening new accounts:
  Though new account offers and advertisements for balance transfers are tempting, opening even one new account can drop a person's score.
• Closing old accounts:
  Closing accounts that are not used anymore can drop a person's available credit. His or her debt-to-credit ratio will increase, causing a score to drop. Officials said a person should use his or her card once every six months to keep it active.
• Not paying attention:
  Though a credit card user may not make a mistake, others may. Officials said consumers should review their credit reports. They said one in four reports contains an error, so consumers should be vigilant.