Thoughtless Mistakes in Credit That You Need To Stop Making
All people should be aware and concerned about his or her score in credit. 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. Everyone needs to work in order to maintain a good rating and there is no denying that fact. Below are only a few of the many careless credit mistakes that people are mindlessly doing today that could potentially impact them for the rest of their lives.
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 should check it regularly or very often in order to certify that your identity is safe and everything is in order.
Acquiring advances in cash on your credit card – It is not recommended to obtain cash advances on your credit card as it will lead you to an exceptionally high interest rates. These interest rates are very much larger and higher than the interest rates applied to purchases. In addition to that, there is also no period of grace and they always come with transaction fees. This means the interest on the money begins to add up immediately. For the payment of the service or product in question, it is much more cheaper usually to pay directly using your credit card instead.
You are under the opinion that all credit is bad credit – You may be hesitant to touch a credit card or a loan 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. You need to show them that you are capable of making repayments on time and are reliable in doing so in order for you to fix your credit rating. For this reason, we can say that loans with 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.
Doing minimum 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.