Handling your credit isn’t something that was taught in high school, though it probably should have been. Now it’s on you to do everything in your power to keep your credit score high and your debt low or non-existent. Taking care of your credit isn’t easy, however, and there are all kinds of mistakes that people make resulting in even poorer credit.
Here are some costly mistakes to avoid in order to improve your credit or keep it in good standing:
- Paying bills late — This is the most obvious mistake but it happens all the time. Even paying a bill a day or two late can ruin your credit score and your credit history. That’s why all the 18-year-olds across the country who are making late payments aren’t just ruining their current credit score, they are jeopardizing their future credit score as well. Payment history accounts for 35% of an individual’s credit score and late payments can lead to serious financial issues. No matter what, be sure to pay all your bills on time.
- Purchasing expensive new vehicles — One of the biggest mistakes people make when attempting to fix their credit is spending a fortune on a new vehicle. If you’re focusing on improving your finances and strengthening your credit, buying pre owned vehicles is a much better option. Used cars actually make up three out of four automobile sales across the United States. Though you can certainly acquire newer vehicles with quality bad credit auto loans, you’ll have a much better chance at landing an effective and affordable used car, with or without a bad credit auto loan.
- Not paying attention to credit score — Ignoring your credit score can inadvertently ruin it. Since fraud and inaccuracies can occur to anyone at anytime, you need to constantly be checking your credit history. If you notice any suspicious activity, file a report with the credit bureau and call your bank immediately.
If you want to learn more about managing your credit, find affordable pre owned vehicles, or receive a quality bad credit auto loan, give Auto Sales and Service a call today.
