Five Credit Mistakes Made By Rookies
by Matthew Gause

More and more credit is becoming a bigger part of our lives. Your credit score can affect your quality of life. The car you drive, what house you live in, and the jobs you get can all be affected by your credit score. As time goes on your credit score is more and more important. That’s why you need to build solid credit history as soon as possible. If you are just getting started or you’re rebuilding your credit score this article is very important. It will teach you the five credit mistakes made by rookies and how you can avoid them.

First Mistake-Too many credit inquiries. When you apply for a new loan, credit card, or rental agreement you allow creditors to pull your credit report. The new creditor might not be completely forthcoming but somewhere in the small print you give them permission to pull your credit. If this happens one or two time in a six month time span you have nothing to worry about. On the other hand, more than four credit inquiries in a six month period send a red flag to the credit reporting agencies and they dock your credit. They assume you are either going to rack up all the newly acquired bad credit or that something is wrong because you’re acting desperate.

I made this mistake personally in my college days. Between classes I noticed a table covered with sunglasses, t-shirts, and other cool items. I could pick any two items if I filled out some credit card applications. I was a little suspicious and asked if there were any strings attached like yearly fees and cancellation penalties. Nope, just fill out the five different applications and that’s it. They said I could cancel the cards the second I got them. True, but applying for all five cards in one day hurt my credit.

 [1] [2] [3]