You Need To Stop Making These Careless Credit Mistakes
Regarding credit score, everyone needs to be concerned about it. This could hurt your ability to be able to lend money such as in terms of taking out a mortgage or in terms of taking out a phone contract. It affects people in various ways. 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.
Lacking the initiative to check your credit report – In itself, failing to check your credit report is already a mistake. Your financial history and health 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, they will come with transaction fees and there is no period of grace. This means that the dividends on the money would immediately being to add up. It is normally much cheaper to pay for the service or for the product in question directly with your credit card instead.
You believe that all credit is bad credit – If you have a terrible credit rating, you may be thinking twice of touching a loan or a credit card ever again. This feeling is completely justifiable. You would unfortunately would really be struggling to repair your credit score if you do not in some form borrow and money and that is the harsh truth. You need to show them that you are able to make repayments on time and are reliable in order to repair your rating. This is the reason why loans that have bad credit and monthly payments are a good idea. You can show your lenders that you are reliable and are able to pay on time every month, and they are easier to be accepted for.
Making the most lowest payments – Making only the minimum payment on your credit card every month can lead into a very bad credit score. By doing this, it would signal the lenders that you are probably struggling to pay off the money that you owe and you would probably be not anywhere near paying off the money that you owe.