Are You Making These Credit Report Mistakes

Avoid these payment mistakes and save your Credit Report

Taking control of your credit report and the score therein is vital to your financial future. Credit reports are used on everything from applications for loans to applications for employment. If you take the steps to manage your credit report now, you’ll save yourself money and hassle in the future. There are many mistakes that people make with managing their credit. Your credit score will improve if you follow these simple rules.

The best thing you can do is pay your credit cards and other loans on time each and every month. Nothing ruins credit faster than late payments. Late payments will incur fees that could put you at risk for being over the limit (and incurring more fees). Even if you can only pay the minimum payment due, make sure to make that payment on time every month. Try to send in your payment at least five days before the actual due date. This way you’ll be sure to get the payment in on time.

Although paying the minimum payment is a necessity sometimes, you shouldn’t make it a habit. If you only pay the minimum payment month after month then you’ll be stuck paying your credit card for longer than you can imagine.. For example, a minimum monthly payment on a credit card is $17, but the monthly finance charge is $7. At this rate, you are only paying $10 toward the balance every month. With a balance of $800, it would take you 6 years to pay off the balance. In that same period of time, you will be paying an extra $500 in interest. Just doubling the minimum payment will save you 4 years of payments and over $300 in interest.

These two simple payment steps will save you a lot of money and time. In addition, your credit report score will improve and you will become eligible for better credit terms in the future.