4 Bad Credit Habits to Fix
Spending habits and financial ruts are something we all get into. For some, these are easy to change for but other consumers, these habits become entrenched in behavior despite causing bad consequences. Once we get into a routine, we may not even notice we are repeating the same mistakes time and time again.
It is never too late to change your bad credit habits
The good news is that there is no time like the present to reverse the trend of bad habits and replace them with good.
Here are 4 bad habits related to credit which you should prepare to ditch:
Bad Habit Number 1 – Charging too many items to credit cards
This is one of the easiest credit habits to get into – charging your purchases to plastic without even thinking about it. However, the reality of using credit cards too often or too much is that we spend much more than we realize and can get caught out when the monthly statement arrives.
Break the habit by – Spending mindfully and keeping track of what you charge to your credit card so that you can pay off the balance in full at the end of the month.
Bad Habit Number 2 – Shopping for the sake of it
Everyone loves a good deal. But it’s not a good deal if you are buying items that you don’t need, when you cannot afford them. This is true no matter how “big” the discount is!
Break the habit by – Asking yourself two key questions when you are tempted to buy – do you need it and can you afford to pay for it on time? If you don’t need it, walk away. If you need it but cannot afford to pay for it, remember that any credit card interest that will accrue will most likely totally cancel out the discount or saving that lured you to the item in the first place.
Bad Habit Number 3 – Procrastinating with bill payments
Putting off paying bills invariably leads to missing payments and getting late fees, as well as causing harm to your credit rating.
Break the habit by – Dealing with bills immediately once you receive them in the mail. Open the envelope right away, pay the bill and then file it away for your records. If you are struggling to pay your bills, opening the envelope straight away means that you can contact the service provider or your creditor to discuss payment options before the bill falls late.
Bad Habit Number 4 – Applying for too much credit
Every time you respond to a credit card offer or a retail card offer, your credit file is recorded with a “hard” inquiry, which can erode your credit score.
Break the habit by – Only applying for credit when you truly need it or when you are mindfully trying to use credit to improve your credit score. You do not have to accept all offers made to you – be selective and your credit score will show the positive results.
Start today the right way
If you need a boost to help direct your finances the right way, we can help introduce you to some top online lenders. You can also browse our site for valuable guidance on how to tackle bad credit using some tried-and-true tricks for improving your credit score.