Loans and credit cards can be useful, or they can be the downfall of your credit score. If you use them wisely they can build your credit and you can get your dream home, get the care you have always wanted, and so many other things. If you aren’t using this money wisely it can severely damage your credit and it can take a ton of work for you to get it back on track.
If your credit is bad you need to get working on repairing it as soon as possible. Bad credit can take away a lot of opportunities from you. The sooner you fix it the better chances you have of getting your finances back on track.
Not Checking Your Credit Score
One of the mistakes you could be making with your credit, in general, is not checking your credit score on a regular basis. This score fluctuates, often, but it can get you so many things. Each time you make a payment the number may go up, and each time you open a new loan account or credit card it could go down.
When you check your credit score you can have a look ahead at what may be going on with your entire credit report. If your numbers are low you should get a free credit report (all three of them) and find out who you owe money to that could be damaging your credit.
Not Paying More Than Minimum Balances
If all you are doing is paying the minimum due on your credit cards, or even on your loans, you are never going to get them paid off. Your interest rates will just keep sucking money out of there, and if you keep using your credit cards then you keep paying more in rates and fees as well.
Even if you only pay a few bucks more, over the minimum balance, you will at least be doing a little more on denting what you owe. The more you pay on your loans and credit cards the quicker they get paid off, and the better your credit score looks.
Not Negotiating A Better Interest Rate
Most people don’t realize that you can actually negotiate a better interest rate on credit cards. It’s not something that is only reserved for bank loans and mortgages. Get on the phone and talk to a representative with your credit company.
Maybe your credit wasn’t as good when you first got your card. If that was there case then you may be eligible for a lower rate now that your credit score is better. It never hurts to ask! Better rates can also help you save money, and leave you more to be able to pay down actual balances.