How to Bounce Back From The Top 10 Credit Mistakes

Credit is a tricky thing to manage, especially if you are having financial problems. At times you will make mistakes which could hurt you and you may not even realize it.

By the time you finish reading this article on the top 10 credit mistakes, you will know all the tips and tricks you need to know to bounce back from them.

1. Not using credit is a mistake many people make without knowing they are doing it to themselves. Your credit report is a reflection of how you manage credit and if you do not use it you have no record. To correct this get one credit card and periodically make a charge and pay the balance in full each month.

2. Another mistake people make is closing a credit card account if they are having problems with them. Many times the unresolved issue can stay on your credit report for years. You are better off to stop using a credit card, but leave it active until you are positive there are no unresolved issues.

3. As people get in financial difficulties they will hire a credit counseling company to go in a negotiate on their debt. Getting a reduction in your debt will not always make it go away and could show up as a write off. You are better not to do this unless absolutely necessary.

4. Making late payments on a consistent basis will affect your credit score. Learn to pay your bills on time.

5. Skipping a payment could happen occasionally, but skipping payments whenever it is convenient for you is a bad habit to get into.

6. Carrying a high balance will affect your credit score and as you add more cards is a path to bankruptcy. You are better to carry one card and pay your balance in full. The only way to get out of that cycle is to quit using it until it is paid off.

7. Applying for to many credit cards in a year, or at one time, can be a red flag to the credit bureaus. Having to many credit inquiries during the holidays is one example of a time when people get out of control. You are better off to limit any new cards to one and wait several months.

8. By law you are allowed to get a free credit report every year and you should use that.

9. If you have a problem you are allowed by law under the Fair Credit Report Act the ability to dispute what shows up.

10. Not all 3 credit bureaus report the same way and you want to be sure you know what is in all 3 so something does not pop up when you least want it to.

This is 10 credit mistakes people make and how you can bounce back from them or prevent them altogether.

Eric Stanevich has been associated with new credit applications. To find out more about what credit card that fits you best with 0% or lowest APR go to http://east44.newcreditapplications.com and apply today.

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