Five credit mistakes you should never make

[King bell]

There are a lot of things to think about when it comes to your credit. You might not even realize all of the things that can affect your credit score. However, there are some credit mistakes that you should never make. Here are five of them:

1. Not paying your bills on time – This is one of the most obvious mistakes, but it’s also one of the most important. Your payment history is one of the biggest factors in your credit score, so you need to make sure you’re paying your bills on time.

2. maxing out your credit cards – Another big factor in your credit score is your credit utilization ratio. This is the amount of debt you have compared to your credit limit. You want to keep your ratio below 30%, so maxing out your credit cards is a big mistake.

3. Applying for too many credit cards – When you apply for a new credit card, it will result in a hard inquiry on your credit report. Too many hard inquiries can hurt your credit score, so you should only apply for new credit when you really need it.

4. Closing too many credit cards – You might think that closing unused credit cards is a good idea, but it can actually hurt your credit score. It’s better to keep your credit cards open, even if you’re not using them.

5. Not monitoring your credit report – You should check your credit report regularly to make sure there are no mistakes. If you see anything that looks wrong, you can dispute it and have it removed.

 

[Jasz]

It's not just the mistakes you make that count. It's also the ones you don't make.
Here are common credit mistakes people make, and how to avoid them:

1. Not checking your credit report

The single most important thing you can do is regularly check your credit report to see if any errors have been made. It's free, and can be done online. You can also get a copy of your credit report from each of the three major credit bureaus once per year.

2. Not paying attention to your monthly bills

If there is something on your bill that seems wrong or out of place, take action immediately. Contact your bank or credit card company as soon as possible and ask for an explanation or correction as soon as possible. Even if it's not a mistake (for example, if you recently moved and didn't update your address with one of your creditors), it's still worth checking into because it could be a sign that someone is trying to steal your identity through fraudulent activity such as writing bad checks in your name or opening new accounts in yours.