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4 Credit mistakes you will regret

Credit  Mistakes you will regret

 

If I had it all to do again…

Have you ever played that game? Frankly it isn’t one that you should play all that often. There are a few lucky people who have regrets “but then again too few to mention” ala Frank Sinatra. But most of us have made more mistakes than we care to chronicle, even in our mind.

Doubtless you have made some of these financial mistakes that you would take back if you could. If you are young enough not to have made these mistakes then count yourself among the lucky.

  1. Credit Card Debt: “Free money. No, really. It works! You buy things, and no money at all comes out of the bank. You get your stuff…WITHOUT PAYING FOR IT. Yeah, you have to pay it off but you can do it a little at a time and soon you’ll have more money so it will be easier and easier and easier and…Let’s Go Shopping!” If we are honest, I have to admit that what you just read is an internal conversation that I had more than once when I was about 18 years old. Credit card limits were a goal to which I aspired, and quite successfully. “But I must have good credit. They keep sending me cards!” Oy.
  2. No Credit: It sounds contrary to what we just said, doesn’t it? We just decried the use of credit cards. No, we didn’t. We decried the abuse of credit cards. Responsible credit use is almost 1/3 of your credit score. If you haven’t opened a credit account of some kind into your 20s, lenders will believe you are a poor risk, this is a massive credit mistake, but not an obvious one
  3. Late Bill Payments: I remember the first time I was late paying a BankAmericard (that was VISA before VISA) bill. I think I was a week and a half late. Nothing bad happened to me. “Huh? That was easy.” Pretty soon it was a habit to be a week or more late. Pretty soon my credit score and my I.Q. were almost the same number.
  4. Inquiring About Credit: I was well into my 30s before I knew that numerous credit inquiries impacted my credit score in a negative way. I used to start the ball rolling on a new car before I actually decided to buy one. “Hmm.
    credit mistakes you will regret

    credit mistakes you will regret

    Maybe I should buy a motorcycle. I wonder if I could get a loan.” Pretty soon I was getting turned down on my little window shopping excursions. I had the stench of desperation about me. Lenders want to lend money to people who haven’t been turned down by other lenders. The old saying, “You can only borrow money if you don’t need it” isn’t too far wrong.

Follow these simple tips and, at least about easy credit mistakes, and you will be able to sing along with Old Blue Eyes.

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