Buying more than we need? Wanting more than we have? Spending for the fun of it? These can all lead us off the deep end. Add a Credit Card to the mix and it feeds a fantasy of immediate gratification. Then the day the bill arrives, OUCH! Here are some great tips to avoid credit mistakes.
Working to earn and maintain great credit scores is a lot like trying to reach and maintain a healthy weight. It’s easy for some people and next to impossible for others, like me.
Mistake No. 1: Ignoring Your Credit Reports
Mistake No. 2: Making Late Payments
Mistake No. 3: Charging Too Much On Your Credit Card Accounts
You shouldn’t assume that your credit is okay just because you had great credit scores the last time you applied for a loan. Mistakes appear on credit reports all the time. In fact, the Federal Trade Commission released a study in 2013 that found an estimated 21% of us have errors on our credit reports.
Avoiding the mistake: Instead of assuming your credit is still in good shape, it’s a good idea to develop the habit of checking and reviewing your credit reports often (perhaps monthly, but at least every few months). You can easily access all three of your credit reports for free every 12 months at AnnualCreditReport.com. There are also many websites where you can check your credit reports and scores online, often for free. Plus, a number of credit card issuers give cardholders free access to their scores on a monthly basis.
EXCELLENT BOOKS TO HELP: