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 credit report is your history in finances and history in financial health. 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.
Obtaining your credit card cash advances – Since it will lead you to a very high interest rate, it is not recommended to acquire a cash advance or 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 the interest on the money begins 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 opinion 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 feeling is completely justifiable. 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. Due to this fact, we can say that monthly payments and loans with bad credits 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.
Making minimal 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.