Monday, April 14, 2008

Some Mistakes which Can Harm Your Credit Worthiness

We all want to have better credit and to see our score in an around 600. But to maintain this much credit score you need to wipe out some mistakes. In this post I am discussing some basic mistakes which consumers do.

1. A credit card for wrong reasons: Consumers sometimes ended up taking a credit card for some wrong reasons or without any reason. Credit card companies are there to do their business and to take as much money as possible from consumer’s pocket. But you have to decide which card is essential for you.
2. Choosing a wrong card: This is one of the biggest mistakes made by so many credit card users. They don’t shop for the right card. Actually I want to mean, do a search before taking a card. Look for companies that offer less interest card. In fact 1 percent less interest card can help you a lot.
3. Crossing credit limit: Crossing the limit of your credit card can have a bad effect on credit report. It has been found that many customers exceed their credit limit. So it is better not to do so.
4. Ignoring monthly statement: Monthly statements are very important for any customer. And they need to check it properly because there may be some wrong information or discrepancy involved. Also you should go though the terms and conditions of that credit card and the charges of late fees.
5. Buying unnecessary things: Credit card is easy money for the customers and that’s why they tend to purchase many things which are unnecessary for day-to-day life. Credit card should be use only to purchase necessary things and in the time of emergency.

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