When you’re reading these, keep in mind that your personal finance and credit can affect how easy it is for your business to get financing. Here are seven things you can avoid to make your credit much stronger:
Gluttony: Bumping Up Against Your Credit Limit
When you know that you’re credit limit is a certain amount, it’s tempting to take full advantage of it. Not only does this increase your chance of slipping into debt, but it looks bad on a credit report.
Pride: Not Checking Your Credit Score
Even if you know that you should have a terrific credit score, it might not be the case. Mistakes happen, and it can take a long time to fix them once you find out about them. By that point you may have missed the opportunity for a loan that you needed, all because you didn’t bother to keep track of your credit score. Everyone can get one free report a year, and it’s wise to use it.
Greed: Taking Out a Cash Advance
Cash advances often come along with a shocking interest rate, and hardly make it worth the trouble. It’s much smarter to save your credit card for purchases that only require a swipe.
Envy: Applying for a Card That’s Out of Your League
These days, a lot of credit cards come with bells, whistles, and rewards. While some of these may seem flashy and appealing, credit cards are not a one-size-fits-all luxury. What works for your friend might not work for you, and vice-versa. It’s important to be realistic about what kind of card you need, and what kind of card you can get. That way, you’ll get the card that’s perfect for you.
Wrath: Closing All Your Credit Card Accounts
When you have a sour experience with your credit card, it may seem like a good idea to close your account and rid yourself of the hassle. But if you do this too much and without a good enough reason, it can end up negatively influencing your credit score. Instead, just stop using that particular card, but leave the account open.
Sloth: Not Checking Your Monthly Credit Card Statements
A lot of people sign up for automatic payments with their card, and then forget about them. But once these start to add up, it can take down the fast track to debt. It’s a good idea to look at your statement every month. Plus, if you fall victim to identity theft, you’ll know about it right away.