What are the common credit mistakes?

In simple terms, credit means that you are going to use the money of someone else to pay for your own things. By taking a credit, you owe to repay the creditor with the entire amount with some rate of interest.

It happens that when you want to take some sort of loan or credit, any financial company shall look into your credit history and the credit worthiness to understand whether any financial risk is involved in the deal.

Such agencies decide the terms and conditions for granting the loan based upon the financial soundness and good credit history of the person.

Common credit mistakes
There are some credit mistakes made by people that lead to a bad credit score and financial stake avoiding which you can ensure reduced credit debts too.

1. If you use very expensive credit cost that are not much desired then it shall affect your credit score negatively.

2. Don’t carry too many credit cards that shall make your credit report to state that “there is too much credit” degrading your credit worthiness.

3. If you are paying only minimal dues then it shall raise your credit balances very high.

4. If you take much cash advances, it shall cost you high rate of interests and some additional fees too.

5. Never exceed your credit limit that shall make you entitle to pay some over limit fees and shall influence your credit score badly.

6. Try to pay your credit balance on time failing which you shall have to pay unnecessary late payment fees leading to high interest rates.

7. Don’t charge more than what you can afford as this will create amassing debt that you won’t find easy to pay off later.

8. Never let others to use your credit such as cosigning a loan because this shall make your credit report state “too many consumer accounts” and will adversely affect your credit score.

9. Don’t ignore your credit problems as this will lead to unwanted negative affect on your credit score. Instead talk to your creditor before you are late and make necessary arrangements.

10. Don’t fail to report any change in the address to the creditors so that there are no misplaced bills and late payment.

11. Always use your full legal name and don’t confuse your creditors with partial names and initials.

12. Check your credit report frequently so that you are clear with all your credit status.

Learn more here in my section explaining all about loans and credit cards guide to help you get rid of debt and prevent further financial crisis.

What’s your biggest issue? How do you handle it – or can you think of any additional tips you can share with others if you don’t have an issue with this in your life?

Share them with us below – and then share this blog post on Twitter or Facebook or wherever you feel it could help someone you know.

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Money Matters.

"Power Tips" magazine is back!
You Get A Free Complete Self Help Report delivered to your email box every edition, plus you get a free PLR article and other great gifts!

SUBSCRIBE BELOW ...  I promise you will want to USE what you learn!

I really want to know what you think of this site, this page, and to hear your tips or suggestions about it.

So please share your story or simply add a Comment in the comment box.

If you feel that the information on this page has been useful to you please give it a Like or share it with your friends - thanks!!

You are a life Saver!!

I recently discovered this site and I can tell you that my life has not been the same. I now come here EVERYDAY and spend at least 1 hour.

I used to spend that time browsing online fashion and beauty magazine which just means that I spend more. Now I have replaced that habit with coming here.

In future I will think about contributing articles as well. Thank you! Thank you!! Thank you!!! and God bless"

Contact Us | About Us | Terms of Use | Privacy Policy | FAQ | Testimonials

Amazon and the Amazon logo are trademarks of Amazon.com, Inc. or its affiliates. As an Amazon Associate I earn from qualifying purchases. Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.