Irresponsible Credit Mistakes That You Need To Stop Doing
Everyone needs to be sure and worried about their credit score. 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. There is however, no denying of the fact that every person needs to work to maintain a good rating. Careless credit mistakes that people are doing today which could potentially impact the rest of their lives are revealed and presented below.
Failing to do a check on your credit report – In itself, failing to check your credit report is already a mistake. Your credit report is your history in finances and history in financial health. You should check it regularly or very often in order to certify that your identity is safe and everything is in order.
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, they will come with transaction fees and there is no period of grace. 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 hesitant to touch a credit card or a loan 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. 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. 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. 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.