Six Deadly Sins of credits Score And How to Avoid Them
There are many kind of sins we can commit against our credit score and it will be of a greater advantage to us. This is because credit score helps us in so many ways especially in the case of mortgage and auto loans. A good credit score is always one of the best ways to have a low interest rate on loans and mortgages which can save us thousands of dollars with a period of time. Infact, being involve in this sins deny you alot of life opprotunities and again lenders and financial institutions will not respect you and will not be willing to associate with you because they will see you as someone who lacks integrity especially with your bad credit score which will be the resultant of the credit sins you will be committing.
When we try to avoid this deadly sins, we can be able to have a good credit score that will make us stand firm in financial environment.
These six deadly credit sins could bring about a bad credit score for you
Trying to pay a blind eye to your credit report is a very bad attitude, you thinking since you didn’t see your credit report, then it doesn’t exist. It do exist and you must do everything to see it, because studies have shown that 1 percent or more of credit reports that are prepared are always having ome mistakes or another and this mistakes could be a very costly one, so if you didn’t care to know what is in your credit report then you will be at the disadvantage. Because it could lead to a lower credit score which will inturn makes you to pay more interest rate on mortgage and loans.
There for in other to avoid this kind of mistakes, you need to go through your report which is always make available every four months by any of the three major credit bureau which include; Experian, Equifax, TransUnion). Going through this report every four months allows you to be able to point out any form of error and get it corrected in a short time so that it won’t affect your credit score.
2. APPLYING FOR TOO MANY CREDIT CARDS
What ever you do with your credit card, there is always a credit history that will make your potential creditor to know your level of honesty and integrity, it is a very bad financial gluttony for you to possess excessive number of credit cards. This will makes your lender to be worrisome because they may see you as someone who is trying to incure more debt onto himself.
To avoid this, it is always best for you not to apply for too many credit cards at the same time as it will bring down your credit score and also reflect in your credit report. But if you have in any way open more credit cards than necessary, do not close them abruptly because that will also have a negative impact on your credit score. Most importantly, try and have less credit cards and be free from any kind of unnecessary debt on your self.
Do not allow your feelings and emotions get over you as result to how you spend, because self indulgent feelings can raise budgets unnecessarily, for instance when you are trying to purchase things you don’t really need all because you want to proof to someone that you worth it and you can get it. This will not in anyway help your financial stability at all, so is best when you don’t allow your emotions get over your head when it comes to your financial management.
4. ENVYING OTHERS
You must understand that, your life, your worth, your finances cannot be compared to others, therefor unnecessary envy and trying to buy or do what my friend did have to stop. Do things that is important and necessary to you, do things that won’t affect your financial stability and don’t allow your envy for others to get over you.
Avoid any form of over spending all in the name of doing what other are doing or trying to compare other people expensive life style with your own and this way you can be free from unnecessary debt.
It is not always a very easy task trying to meet up with alot of expenses, so, there are always time that you will need to request help or financial advice from others, don’t be too proud or too shy to make a request for appropriate help when necessary, you can request for a more lower interest rate also. Do your self alot of good by allowing people and professionals to come to your aid and support
If your debt is become increasingly high, you can also consider a credit counseling agent who will be able to help you out. Keep your pride aside and do not forget that you major priority is freeing your self from any kind of burden of the mind. This will make you feel alright and even the people around you will enjoy you as much as you will enjoy your own life as well.
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Trying to spend every penny on your credit card limit makes you to incure unnecessary debt on to yourself. This kind of greeds really have a bad impact on your credit score as it will make you to end up with a large debt to income ratio and this will scare away your potential lenders because they will have the believe that you are at risk financially, because the closer you are to your credit limit the more vulnerable you are to fall into a very serious debt
So, avoid going close to your credit score, be mindful of your spending and be very smart in trying to build a good credit score.
Originally Published By: huffpost.com
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