How I Became An Expert on Money

Thoughtless Mistakes in Credit That You Need To Stop Making

Regarding credit score, everyone needs to be concerned about it. This could potentially impact your ability to lend money such as in terms of taking out a mortgage or taking out a phone contract. In different ways, it impacts people. However, there is no denying that in order to maintain a good rating, everyone needs to work. Careless credit mistakes that people are doing today which could potentially impact the rest of their lives are revealed and presented below.

Not checking your credit report – It is already a mistake in itself to fail to check your credit report. Your history in financial health and financial history itself is your credit report. You need to examine it often or on a day to day basis in order to ensure that every single thing is in order and that your identity is safe.

Availing for cash advances on your credit card – As it will incur exceptionally high interest rates, it is not advisable to get cash advances on your credit card. These rates are very much higher in comparison to those applied to purchases. In addition to that, there is also no period of grace and they always come with transaction fees. This would mean that the interest on the money will begin to add up immediately. It is normally much cheaper to pay for the service or for the product in question directly with your credit card instead.

You are under the impression that all credit is bad credit – You may be having second thoughts in touching a loan or a credit card ever again if you have a bad credit rating. This is completely reasonable. The unfortunate truth is that you will be really struggling to fix your credit score if you do not, in some form, borrow money. In order to fix your credit rating, you would need to show them that you can make repayments on time and that you are reliable. For this reason, we can say that loans with bad credit and monthly payments are a good idea. They are much easier to be accepted for and you are able to show the lenders that you are capable of paying on time every month and are reliable.

Doing minimum payments – If you only do the lowest payment on your credit card each month, you are subjected to having a very bad credit score. You probably are not getting anywhere closer to paying the debt off by doing this, and it signals to lenders that you are struggling to pay off the money that you owe.