7 Biggesst Shopping Mistakes People Make
For wise credit use here's the key
Use it wisely and responsibly,
But if it's misused
Or excessively abused
You'll sit buried in fees.
With new credit laws and regulations constantly changing, many people make costly mistakes that could affect there credit scores.
Ignoring changes in today's credit
landscape can result in paying more for everything. These credit
mistakes can force you to pay higher interest rate loans.
Other mistakes will have you paying higher insurance rates and even making it harder to rent an apartment.
Yes, having good credit is more
important now than ever . In fact, your credit is often more important
to businesses than the cash you have. If you don't believe that last
statement try renting a car or reserving a hotel room.
Getting credit is easier than
ever; managing your credit is a little more difficult. The proof is the
number of bankruptcies people file each year.
It seems the easier it is
to get credit the more financial trouble people can run into.
To help protect yourself read and
follow the 7 biggest credit mistakes most people make. Note: I omitted
late or missing a payment because it's an obvious credit mistake.
1. Using Credit To Make Themselves Feel Good.
These people have a name coined for them, they're called recreational shoppers.
People who shop for entertainment or to fight boredom often result in fighting financial problems in time.
2. Closing Credit Card Accounts.
This is what people usually do
to resist the temptation to use or abuse credit cards. But with the
FICO scoring system closing credit accounts will often hurt your
credit.
Instead of closing the accounts simply avoid using them or cut them up if the temptation is too great.
3. Not Teaching Your Children Responsible Credit Use.
Children learn from what they see
and experience. So if your children see you using credit excessively
and irresponsibly they will get the same habits.
4. Paying Only The Minimum Payment Each Month.
This is a sure sign you're not managing your credit properly. Of course, the credit card companies love you for doing this.
People like you make them
excessively rich. But it's murder on your personal finances. And the
payments will slowly suck the financial life out of you.
5. Not Protecting Your Credit.
One of the fastest growing crimes today is Identity Theft.
According to the United States Federal Trade Commission, as many as 9 million Americans have their identities stolen each year.
Identity theft starts with the
misuse of your personal information. This includes your Social Security
number, credit card numbers, or other financial account information according to FTC research.
Pay attention who you give these
numbers to. Avoid giving them out when possible, especially to people
who call you over the phone.
6. Using Credit Card or Checks For Cash Advances.
This is where credit card companies make a killing off you.
Imagine loaning you money, charging you interest on that money and tacking on even more interest for loaning you cash.
And best of all they get to
charge you interest immediately and not have to wait 30 days to do it.
Wow, maybe I'm in the wrong business.
7. Ignoring Your F.I.C.O Score.
It's still hard to believe, but
there is still a large percentage of the adult population who don't
know what a FICO score is. And if they know what it is, they have no
idea what there FICO score is.
Ignoring your FICO score can be a major mistake.Why? Because more employers, insurance companies, landlords and other important people in your life use it to make value judgments about you.
These are the 7 biggest credit
mistakes people make before they're buried in financial problems. I
urge you to stay alert to any of these potential problems and correct
them before it's too late.
