If you want to get the lowest interest in credit cards and get on top of every lender’s priority customers’ list, you need more than a second-rate credit standing. That’s why borrowers try to avoid charging up more than 30% of their credit limits and not paying bills, to protect their credit scores from getting dinged. But there are other habits you might be doing that are destroying your credit without even recognizing it.
Jumping on the next “best” promotional secured card deal
Be careful when choosing a secured card. Look into the promotional offers, interests and charges on missed payments and over the limit fees. Don’t use it as a credit line extension-but a tool to get your credit back up.
The fact that you have to put down a deposit before you can get the card and you have to bear with the cap on your spending means that the card does not extend you real credit. It is no more than you regular debit card during emergency. Also, make sure that your creditor will not tag it as a secured credit card account. Otherwise, it would turn off potential lenders who view secured credit card holders as high risk borrowers.
Overlooking smaller bills
Late payments can quickly destroy your credit. Even if you only owe $20 or less, delayed payment for 3 months or more, or consistent late payments can stay on your credit report for seven years or less. So, stick to your payment date because tardiness won’t go unnoticed. Your creditors would unluckily document them, and a series of delayed payments can taint your credit record. So, whether or not you have a cash flow problem avoid being late. You can automate bill payments or consolidate your loan so you only have to pay one creditor at a time.
Not checking your credit report
When was the last time you checked your credit report? Maybe it’s high time to do it to avoid paying higher interest than you actually owe for a car loan, mortgage or line of credit.
There were instances where borrowers had to pay an interest rate which is two times higher than what they actually deserve because of purportedly poor credit. If you want to snag a lower interest rate and save thousands of dollars, request for your credit report first and try to spot and correct an error in your credit report.
Avoid or stop these common habits that may damage your credit score. Clean Credit helps borrowers clear up report mistakes and save them thousands of dollars along the way.