Habits That Can Ruin Your Credit Standing

Maintaining a good credit standing is essential, especially when the economic future is a bit uncertain. Establishing a good credit score will always give you that option of taking a loan in case of emergencies. That, in a way, will give you a fall back in case you become cash-strapped. But some people take their credit standing for granted. There are certain habits that can ruin your credit and put you deep in debt without you realizing it until it’s too late. Here are some of the more common bad habits to be aware of in case you have it.

Habit No. 1: Using Credit Card For Most Purchases

Paying by credit card can be quite easy and convenient. You just need to take out one of your several credit cards and you are good to go. There’s no need to go through the hassle of getting some cash for purchases. But the convenience of a credit card comes with a price, literally. Every purchase using your credit card comes with subsequent charges to go to your credit card bill. Before long, you will realize that your credit card debt seem to grow bigger and bigger by the day. Only then will you realize that you have a debt that you can no longer afford to pay.

Habit No. 2: Setting Aside Paying Bills

Another common bad habit that can wreck your credit is by paying bills for later. Many people just do not like paying bills. They try to set it aside and pay for it later. But once they get back on it, they realize that it is past the due date. They decide to pay for it next month. This bad habit can also have an impact on your credit score since late payments not only incur late charges and penalties, they also become a red mark on your credit score. To avoid this, try to deal with your bills immediately after you receive it through the mail.

Habit No 3: Trying To Get All Credit Offers

Credit cards provide attractive offers in order to entice people. If you have the habit of trying to take advantage of all the offers given to you, then you might be on your way towards ruining your credit. When you do this, your credit history is hit with an inquiry. Too many inquiries can cause your credit score to go down. You can prevent this by simply saying no to all credit card offers you receive.

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