Nobody wakes up in the morning and decides that they’re going to have bad credit. It’s fair to assume that most people understand the consequences of bad credit, and they’re willing to do whatever it takes to keep their score in tiptop shape. Life doesn’t always work according to plan, and a job loss, a divorce or an illness might make it difficult for some of us to pay bills.
These are a few causes of bad credit, but they aren’t the only ones. The truth is, bad financial habits might play a role in a low credit score.
Not opening your credit card statements
I’ve yet to meet a person who enjoys getting bills in the mail. However, whether we like paying bills or not — they’re going to arrive every month, and sticking your head in the sand isn’t going to make your credit card debt and other expenses go away.
If you don’t want to deal with debt, it’s easier to toss mail aside once it’s delivered to your home. This, however, isn’t going to get you anywhere.
Have you ever heard the expression ‘out of sight, out of mind’? Well, there is truth behind this saying. If you don’t open your credit card statements when they arrive, there’s a chance that you’ll forget about the bill and not pay by the due date.
Your credit card company will report the lateness after 30 days. And unfortunately, this negative information can drive down your credit score. Rather than run from debt, open credit card statements as soon as they arrive and record the due date on a calendar.
Ignoring your credit report
Then again, maybe you pay your credit card bills on time each month; and because of your timeliness, you believe that your credit is in the best shape possible. Unfortunately, this isn’t always the case.
Credit report errors are more common than you might realize, and it only takes one error to lower your score and stop loan approvals.
If you really want to know the shape of your credit, you need to order your credit report once a year, and then check it for reporting errors. Negative erroneous information on your credit report can be the kiss of death if you’re trying to buy a house or finance a car.
To remove this information from your report, contact creditors directly to issue a complaint, or work with a professional credit repair company. A credit repair company will identify any errors on your report and then work directly with the bureaus and creditors to get these items off your record. And in many cases, they deliver results.
“Members have seen an average 11.6 negative item removals in just 4 months,” reports creditrepair.com.
As a matter of fact, working with a professional might get the results you need faster, at which time you can move forward with your life.
Don’t let bad credit discourage you. Getting organized and monitoring your credit activity might be the ticket to a better credit rating.
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