You Need To Stop Making These Careless Credit Mistakes
All people should be aware and concerned about his or her score in credit. This could potentially impact your ability to lend money such as in terms of taking out a mortgage or taking out a phone contract. It affects people in various ways. There is however, no denying of the fact that every person needs to work to maintain a good rating. Below presented are some of the careless credit mistakes that people are doing today which could impact them for the rest of their lives.
Not checking your credit report – Lacking the initiative to check your credit report is already a mistake in itself. 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 – It is not recommended to obtain cash advances on your credit card as it will lead you to an exceptionally high interest rates. 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 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 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 able to make repayments on time and are reliable in order to repair your rating. Due to this fact, we can say that monthly payments and loans with bad credits 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 – If you only do the lowest payment on your credit card each month, you are subjected to having a very bad credit score. By repeatedly doing this act, you would not probably go anywhere near to paying your debt off and it gives the lenders a vibe that you are not able to pay off the money that you owe since you are struggling.