Credit is like trust; it must be earned. In order to extend credit to you, a creditor must feel confident that you will repay. Otherwise, you will pay higher interest rates to cover the risk or be denied credit altogether.
The key to earning good credit is to avoid making fundamental credit mistakes like these seven errors. Think of them as the 7 Deadly Sins of Credit.
1. Late or Missing Payments – Few things sink a credit score like missing or late payments. Even a single missed payment can produce a significant drop in your credit score, and that error will stay on your report for some time. Should your payment be ninety days late or more, the payment can stain your credit for up to seven years.
On the bright side, time will heal your score if you don't compound the problem with other missteps. "The beauty of credit scoring is that it giv...
from MoneyTips https://www.moneytips.com/the-7-deadly-sins-of-credit
No comments:
Post a Comment