Common mistakes
THAT WILL KILL YOUR CREDIT SCORE . . .
. . . how to avoid them like the plague!
Taking action is important when it comes to building a solid credit report, however I cannot stress enough the need to know what results are likely or possible concerning each action you take! There are many errors I have seen consistently that can lower your credit score. Take a few minutes to totally understand what you are dealing with!
MOST COMMONLY MISTAKES THAT WILL DAMAGE YOUR CREDIT REPORT:
- Closing 'old' (longstanding) accounts when they are paid off.
- Disputing an old collection (without proof). (More detailed info in Credit Strategy Guide.)
- Keeping high balances on your credit card accounts.
- Applying for credit can lower your score.
- Co-signing for another unless you are fully prepared to take on the payment.
- Never assume one late payment (30 days or more) is not that big of a deal.
- Do not over extend yourself - high debt to income ratio is considered when applying for credit.
- Never assume your credit score is 'so low now it doesn't matter' - one or two months can make all the difference in the world.
- Never ignore collections - paying small amounts before an item is sent to actual collection, and after a collection is entered on your credit is much better than letting it sit on your credit report.
All of the above actions have consequences that can lower your credit score quickly. Take the time to read the specific section regarding your concerns in full. Our credit manual gives extended details on every subject, and also includes free updates by e-mail for an entire year, plus worksheets that allow you to get the edge on your credit rating starting today!