3 Credit Mistakes You're Making Right Now

Most of us think we're being very careful of our credit. That is, until we try to get a loan and are declined! Then the reality wakes us up and makes us realize that we could have done things so much better. Unfortunately, there aren't any do-overs so do yourself a favor and read this article to make sure that you aren't making any of these 3 mistakes...

Mistake #1. Not paying down your credit card.

A credit card is a great tool and it's something that I recommend most people have. In fact, you should have many of them! However, it's also important that you pay them off right away. Or, if you're not able to pay them off right away, you should at least pay them down as much as possible. Paying the minimum amount is important but it's only the beginning. Instead, you should be actively paying more than that amount each and every month, with the goal of keeping your balances low.

Mistake #2. Keeping important personal information on your phone.

If you're like most people, your mobile device is your life! You rely on it to communicate, be entertained, and maybe even to do your banking, too. Unfortunately, if you've saved any passwords or credit card information on your phone, your phone is an ideal target for a thief to steal and use. Not only might they steal money from you, but they can impersonate you and severely damage your credit score, which can take years and thousands of dollars to correct.

Mistake #3. Not checking your credit reports.

Your credit report is a report of your financial health and history. You should check them regularly, just as you go to the doctor, dentist, optometrist, etc. Your credit report will ensure that your identity is safe and your finances are in order, and it can even save you money and help you get or keep a job. So make sure you're checking your credit reports at least every 6 months.

Summary

In the world of credit, it's easy to sometimes become overwhelmed by the sheer volume of information that you can be flooded with. I understand! So if you want a smart, safe place to start to get your credit in order and to start making sure that your credit reports are as healthy as possible, make sure you're not making these 3 very common mistakes. If you take care of these, you'll be surprised at how easy it is to build other good credit habits into your life in the future.

Even people who think they're being careful with their credit are often making these mistakes. Add these to your schedule or to-do list and start making them part of your personal financial discipline every month.