It’s no secret that most everyone would like to have good credit. However, it can be quite difficult to navigate this complex system when high schools and colleges rarely teach students how to build, maintain, or fix their credit. If your parents or siblings do not fully understand the ins and outs, no one may be available to guide you. I had to read multiple books, pay multiple mentors and coaches, watch hundreds of youtube videos, and test trial over fifty free clients with credit scores between 300-850 to truly understand the study of credit.
The laws and rules of credit change approximately every 18 months, and constantly learning about credit is mandatory. Some people think that their everyday habits help their credit profile, but they could unintentionally hurt it. Here is a list of things that will hurt your credit score that you will want to avoid:
1. Derogatory Marks ( Make on-time payments)
a. Negative marks on your credit report, usually owing to debt to someone.
b. Closing accounts
2. High Balances ( If you don’t have it in cash, you don’t have it in credit)
a. Maxing out your credit cards without paying the balance in full before the statement date.
b. Paying the minimum balance
c. Buying things that you can not afford (Control your spending habits)
3. Missing Payments
a. 30 day late payments
b. 60 day late payments
c. 90 day late payments
4. Having only 1-2 accounts with small credit limits, with no mixture of accounts.
5. Co-Signing for an untrustworthy person.
6. Too many inquiries in a short period.
a. Applying for new credit daily.
7. Not knowing how to manage your or other people’s money.
If you are practicing any of the bad habits on this list, please stop and learn healthier credit habits. Thank you for taking the time to read this article. Enjoy this beautiful day, and know that you are the biggest asset in your life. It takes you to create the lifestyle that you want.
Sarinthia Saunders is a certified credit repair specialist and expert in her field. If you need help with your credit, call or text (201) 470-4457 for a Free Credit Consultation at Transitional Finances LLC.
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