Credit Diva Blog

5 Financial Mistakes That Can Ruin Your Credit Score

  • By Admin
  • 12 Mar, 2018
  • 0 Comments
Creditrepair
The society that we live in today almost always revolves around credit of some kind. We purchase items on a credit card when we go to the store, and having decent credit is usually required to make larger purchases where borrowing is necessary.

Because credit is such a huge part of the commerce arena, there are few people that do not care about their credit score. For this reason, many people are consciously making decisions so their credit is positively affected. There are many actions, unfortunately, that can hurt your credit, even if you don't see it immediately. Here are five mistakes to avoid, otherwise you will need credit repair services.

Buying things you can't afford

When you buy something that you can't afford, it's probably going on a credit card. According to a recent NerdWallet survey, roughly two out of five people, or 41%, in the United States who have ever had credit card debt report that spending more than they could afford on items they did not need contributed to them going into credit card debt. This debt will negatively affect your credit score.

Maxing out a credit card

According to Veterinarian's Money Digest, you should keep 50% to 70% of your credit limit available. Maxing out your credit limit can hurt your score. Comparing debt level to your overall credit limit makes up about 30% of your overall credit score.

Co-Signing on a loan

When you co-sign for someone, you are helping them out, but you may be hurting yourself. If they pay the loan on time, you will be fine. If they default, however, you will be responsible for any outstanding balances, causing a hit to your credit score. At that point, you will almost definitely need credit repair.

Making a late payment

Most people know that paying a loan balance late can negatively affect their credit score. When you pay your bills on time, it shows lenders that you are responsible, and your score will go up. Timeliness takes up one-third of your overall credit score.

Closing an account

You may think that closing a credit card you don't use anymore is a good thing, but that isn't necessarily true. Keeping an account open will show that you have 100% of the limit available on the card, and this can greatly improve your overall score.

In the world we live in today, having good credit is incredibly important. Rarely will you be able to buy a house, a car, or even a big screen television if you have poor credit. Don't make the mistake of buying things you can't afford, maxing out a card, co-signing, making a late payment, or closing an account. If you need help download our free credit repair checklist, then give us a call today.
 
https://www.creditdivasebook.com/e-book

How Budgeting the Best Credit Repair in Dallas TX Helps Boost Your Credit Score!

By Credit Diva of Dallas 25 Jun, 2021 0 Comments

What can you do to maintain a good credit score and the benefits that come with it? A better credit score helps you now and in the future when you're ready to retire--and beyond!

If you've never

Continue reading

Tips to Manage Credit Cards and Pay Bills On Time

By Credit Diva of Dallas 18 Jun, 2021 0 Comments

Credit card management requires the right strategy to use cards smartly and boost your credit score. They can be a great financial tool, but they can also lead to excessive spending and bad credit

Continue reading

4 Financial Moves That You Can Enjoy When You "Fix My Credit!"

By Credit Diva of Dallas 11 Jun, 2021 0 Comments

Are you wondering, “should I fix my credit score?” That 3-digit score can make or break your retirement and many financial decisions in between!

A high credit score doesn't happen without working

Continue reading

Keeping a Good Credit Score through Retirement: 4 Useful Tips From Credit Repair Dallas

By Credit Diva of Dallas 03 Jun, 2021 0 Comments

Should you heed advice from the best credit repair Dallas offers as you grow older or at any point in your retirement? Maintaining good credit is critical at any age—even through retirement. 

Continue reading