Monstrous Credit Mistakes: 5 Scary Credit Moves

Be afraid. Be very afraid. In recent blogs, we’ve been exploring some scary homeowner experiences, from creepy creatures to ghostly sounds. Today, we’re stepping into the truly frightening realm of low credit scores. These missteps are comparable to running out into the dark night to investigate a strange noise in the middle of a horror film. Don’t be that character. Stay away from these macabre money mistakes.

  • Ignoring the signs. Remember the guy in that scary movie who ignored the open door, the footprints in the yard, the dog’s panicked barking? Likewise, when you ignore bills, late payment notices, and warnings about a lender reporting you to a credit agency, you are in a precarious position. If you are having trouble paying your bills on time, talk to the lender or provider of services and work out a plan to stay in their good graces.
  • Asking too many questions. What happens to the character who openly asks too many questions about the spooky stalker? Similarly, making too many credit inquiries can lower your credit score. It is not wise to apply for credit cards, department store cards, and an automobile loan all at once. This is especially true during the mortgage process!
  • Being invisible. Things never go well for the character that keeps secrets or hides. An individual with no credit doesn’t fare well either. Building credit wisely as a young adult will lead to a better score, lower rates, and a stronger financial future.
  • Sticking your head in the sand. There’s always that one character who laughs at the thought of a paranormal threat or a maniac on the loose, and consequently fails to survive ‘til the end of the film. Failing to monitor credit can be a dangerous mistake. Take advantage of the fact that each agency must provide one free credit report per year, and monitor for mistakes or behaviors that lower the score.
  • Living it up. The hero of the movie stays out of trouble, does the right thing and survives. The wild child of the film typically…well, they do not. Exceeding credit limits, maxing out credit cards, and always paying only the minimum are huge red flags that mark a borrower as a potential problem. Watch out for these wild behaviors for a better outcome.

Good credit decisions will lead you to a stronger financial future. If you’d like to discuss how to build your credit and obtain the best mortgage possible, contact one of our mortgage experts today. 

 

The Balance, Top 10 Reviews, blog.credit.com