There are some things in life about credit which are really killing it. After doing these mistakes, it will be so hard to get your credit score back to it’s good old days. These simple mistakes are easy to dodge if you track them. Here, you can find the most common mistakes that you have to avoid if you are trying to control your financial life.
Never forget to pay the bills on time
No matter if you have money to pay all of your loans or not, if you don’t track their payment days, you are increasing the chance to hurt your credit score. Sometimes missing them just a few days does not affect if your bank don’t report the late payment to the credit bureaus.
Don’t prioritize bigger loans over credit card bills
Majority of the people prioritize bigger loans such as house or car loans over smaller credit cards bills. Just because they are smaller, does not mean that they are not less important. Credit cards actually have remarkable interest rates and if you pay them on time, you will be saving a lot of money in the longer run.
Never ignore your reports and scores
If you have any loans taken or if you are using credit cards you need to view each of your reports at least once every six months. If you don’t, you won’t be learning if your actions works against your credit score. Visit annualcreditreport.com to view your reports.
Don’t close your credit card unless…
If you are not using a credit card, you might be thinking about closing it. If you are paying a big annual fee to keep that card alive, you can close it. However you need to know that closing a credit account might affect your credit score even if you are not using the credit card for a long time.