Your credit score is one of the most important aspects of your personal finances. Without a credit score, you wouldn’t be able to apply for a line of credit, or loan to purchase a car or home. When you have poor credit, you will be missing out on a lot of great opportunities to invest your money and build your future. Your best course of action in this situation is to speak with a credit repair company like Core Global Credit Solutions who will work to restore your good credit and form a comprehensive plan that will help you maintain great credit for the rest of your life! If you have any questions about this or you’re ready to get started, give us a call today.
If you still have good credit and you’d like to keep it that way, keep reading to learn about the top credit mistakes to avoid.
Making Late Payments
It may seem like common sense, but you’d be surprised at how many people avoid making payments on time and believe that they’re still in good standing. The truth is, making late credit payments is one of the worst ways to damage your credit score and when anyone takes a look at your credit history, it will be immediately obvious that you were unreliable in making payments. Take care to always make minimum payments, even if you need to set an auto-payment system to do so.
Not Knowing Your Credit Score
One great way to become more wary of your credit is to simply keep better track of what it is. If you asked any person at random what their credit score is, they probably wouldn’t be able to tell you. The problem with this is that fraud and inaccuracies can bring your credit down over time and if you don’t check it often enough, you’ll be overwhelmed with these burdens all at once. It’s best to check your score at least once a year to avoid this.
Filing for Bankruptcy
It’s not easy filing for bankruptcy and it’s usually a last resort decision for most people. Although your bankruptcy will not affect your credit forever, it will bring it down for seven years if you file Chapter 13 and 10 years if you file a Chapter seven bankruptcy. Take the steps necessary to avoid bankruptcy in the first place and you’ll save yourself a lot of trouble down the line.
If you’re experiencing financial woes, a loan modification may be just what you need to avoid further financial hardship. However, it’s important to note that any modifications to your loan will lead to a drop in your credit score. Although this is certainly better than foreclosure, it’s worth taking note of this so that you don’t make the decision unless it’s absolutely necessary. Be sure to speak with a financial advisor if you have any questions about this.
Opening or Closing Credit Accounts
It may seem crazy, but opening and closing credit accounts can contribute to your low credit score. Just because you received a new offer in the mail doesn’t mean you should accept it. Unless you’ll be saving a lot of money, don’t refinance loans or home mortgages and avoid opening new lines of credit unless it’s necessary. If you have a lot of new accounts opened in a short period of time, your average account age will be reduced and hard inquiries will show on your account. Both of these will lead to your credit score decreasing.
On the other hand, you should be careful when closing credit accounts as well. If you have another credit card, student loan, or car loan and you have outstanding debt, closing the account is bad news. This will make your debt-to-credit ratio increase. Think twice before closing out an account!
Sharing Credit Card Info
Identity theft and credit card fraud are two major culprits of reduced credit. There are several simple steps to follow to avoid this: First of all, make sure that you never give your credit card information over the phone. Many scams are done over the phone because it is difficult to track and you may think nothing of it. If you get a call from someone suspicious trying to get you to buy something, just hang up! Second of all, keep a watchful eye on your bank account. If anything comes through that seems suspicious or you’re sure you didn’t make that charge, contact the bank immediately.
Co-signing on Loans
Co-signing may seem like a good idea at first, but it really isn’t! If the primary signer on the loan fails to make a payment, you’ll be held accountable. Not only will you have to cough up the money, but your credit score will suffer if you don’t. If you happen to have a dispute with the person you cosigned with, you would have little-to-no legal recourse in court.
Contact Us Today
Core Global Credit Solutions is your Top Rated Local® credit repair company in Houston, Texas. Our team of experts will work with you to fully analyze your credit situation, bring you back to good standing, and provide you with long-term solutions for your financial success. Improving your credit doesn’t have to be a frustration and you shouldn’t have to deal with credit repair scams. Give us a call today if you have any questions or you’re ready to get started.