Do You Make These Mistakes With Your Credit?

33 Credit Mistakes You Must Avoid

  1. Avoid fake credit scores (use the industry standard credit score).
  2. Avoid credit repair companies that charge low monthly amounts and typically overpromise and don’t deliver.
  3. Avoid high interest finance companies.
  4. Avoid creditors that don’t report to the credit bureaus (they hurt your credit score).
  5. Avoid co-signing for a friend or relative.
  6. Avoid going over 28% of your credit limit.
  7. Avoid not increasing credit limits on credit cards.
  8. Avoid applying for credit at the wrong time (Tuesdays and Wednesdays are often best for credit cards).
  9. Avoid negative narratives like charge offs, collections, repossessions, tax liens, judgments.
  10. Avoid providing your social security number to a lender unless you have all loan guidelines first.
  11. Avoid any balances on your credit report which were discharged in bankruptcy.
  12. Avoid any late payments on your credit report which were reported 36 months before your filing date.
  13. Avoid allowing any negative information to be reported that is reported on the same account after the charge off date.
  14. Avoid any charge offs reported after the discharge date of bankruptcy.
  15. Avoid non-mainstream lenders (unless it’s short term credit).
  16. Avoid unpaid tax liens on your credit report (try to get tax liens "withdrawn" - better than released).
  17. Avoid secured credit cards that do not convert to unsecured cards.
  18. Avoid credit card companies that don’t report your credit limit.
  19. Avoid ever being late for a payment your first 60 months after bankruptcy or a major financial catostrophe.
  20. Avoid fake installment loans (finance companies offer fake installment loans).
  21. Avoid lenders and auto dealers who offer predatory loans.
  22. Avoid rate shopping for more than 30 days for a mortgage or car loan (apply for those loans within 30 days or each other).
  23. Avoid paying your credit card bills offline and when you do pay your credit bills pay them exactly 72 to 48 hours before the reporting day.
  24. Avoid leasing a car instead of purchasing one using mainstream finance.
  25. Avoid paying off an installment loan early unless the loan is at least 24 months old or you can exchange a higher interest loan for a lower interest loan.
  26. Avoid retail cards unless you keep them paid every month, and they are paid 48 hours before the card reports to the bureaus.
  27. Avoid inserting a “hardship” statement on your credit report (it has no value and can actually harm your chances to get acccepted by some lenders).
  28. Avoid closing credit card accounts even the ones with high interest (just keep the balance at "0" instead).
  29. Avoid sharing credit with your spouse except maybe a mortgage and even then think twice (two credit files is better than one, and it acts as insurance in case of divorce or financial disaster).
  30. Avoid high priority errors on your credit report.
  31. Avoid disputing info on your credit report online or by phone (always do it by letter).
  32. Avoid “3 in 1” credit reports.
  33. Avoid using personal credit for a business, whenever possible. 
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