Two main things happen. First, each application puts a small, temporary ding on your score. Second, if you do get new cards, the average age of all your accounts gets younger, which also can lower your score. Your score likes to see a long, stable history. Opening several new accounts quickly makes your history look new and unstable.

Not all bills normally get reported. Bills from loans or credit cards always get reported. But your rent, utilities, and streaming services usually don’t—unless you use a special service that reports them for you. The key is that late payments on any bill can end up hurting your score if the company sends the debt to a collection agency.

You should talk directly to the customer service department of the bank, credit card company, or lender you owe. Explain what happened in a simple way. Be honest. Ask them if there is anything they can do to help, like waiving a late fee or setting up a payment plan if you’re really stuck. They deal with this all the time and often have options to help good customers.

Your credit score is like a grade for your borrowing history. A high score tells the lender you’re a safe bet, so they reward you with a lower interest rate. A lower score makes you look riskier, so they charge a higher rate to protect themselves. Think of it this way: a great score could save you tens of thousands of dollars over the life of your loan just by getting a better rate. It’s the single biggest reason to build your credit before you apply.