It’s important to have a good credit score if you want to qualify for the best mortgage, personal loan, or private student loan rates. A higher credit score can also reduce your monthly premiums for credit-based insurance and help you achieve other life goals.
And while you can survive with bad credit, it’s easy or cheap. As a result, a good credit score will help you save money in the long run and make your life easier.
Here are four common credit mistakes to avoid:
Not Paying Your Bills On Time
Your payment history plays a significant role in determining your credit score. As a result, ensure you pay your bills on time every month.
To make the process easier and avoid late payments, consider setting up automatic payments or electronic reminders.
Making Minimum Payments
It’s important to pay off your credit card bill in full every month. The higher the amount you carry over every month, the more interest you’ll end up paying on your credit cards.
If you’re unable to pay the amount back in full every month, try to pay as much as you can – before the deadline. This way, you can minimize interest charges.
Not Checking Your Credit Often
Keeping an eye on your credit score can help you monitor your progress and spot any red flags before they lead to problems. For example, you should check your credit score regularly to spot fraudulent charges and any signs of identity theft.
You should also look for any reporting inaccuracies like inaccurate balances and payments. This is crucial because reporting errors can negatively impact your score until you file a dispute.
Taking A Loan Offer Without Comparing It To Others
Shopping for the right loan offer can help you save money in the long run. Even a small difference between interest rate offers can make a big impact and help you get the best offer possible.
If you’re struggling to manage your finances, visit the Nour Private Wealth website! We offer expert investment planning, wealth planning, group benefits, and group pension services in Canada.
Contact us today to avoid these harmful credit mistakes and get a personalized wealth management plan.
Insurance products and services are offered through Nour Insurance Services Inc., a related and separate company from Nour Private Wealth Inc. Only products and services offered through Nour Private Wealth Inc. are covered by the Canadian Investor Protection Fund.