Top Ten Credit Score Mistakes - Part 2Not Reviewing Your Credit Report Regularly - Your report is important, and you should get into the habit of reviewing it regularly. Mistakes do occur. A few inaccurate black marks on your report spell be the difference between you securing that awesome mortgage or not.
You are entitled to receive one free copy of your report from each of the three main reporting bureaus every year. You can request them at the government-mandated website AnnualCreditReport.com. Take advantage of this facility and make sure you know everything about your report. Mistakes can take time to dispute and rectify, and as long as they're still on your report, they negatively affect your score.
Not Considering Identity Theft - Here is another reason why you should always be on top of the information contained in your report and dispute any potential discrepancies. If an unscrupulous individual gets hold of your Social Security number, they can open new accounts in your name and run up enormous balances, for which you might be held responsible!
Genuine mistakes on your report that you can prove are wrong can be rectified. Identity theft is much more serious and more difficult to resolve. That's why you should never give out sensitive information, such as your credit card number or Social Security number by phone, mail or email, especially if the request is unsolicited.
Making Late Payments - Many people don't realize the significant impact late payments have on their score. Your on-time payment percentage accounts for 35% of your overall score!
Even one late payment can make you look like an unreliable borrower, so do everything in your power to keep your accounts up-to-date. If you're at risk of making late payments because you're a forgetful person or have other things to worry about, consider setting up automatic payments for your accounts.
Falling for So-called Credit Repair Schemes - If you've experienced a sudden setback, it can be tempting to reach out to companies that promise they can "fix" your credit.
These offers can seem too good to be true, and the reality is that often they truly are. Repairing credit takes time and requires you to follow a sound debt management strategy. Quick fixes are not the answer, and if you get scammed or exploited by going down that route, you might end up even worse than before.
By avoiding these ten common mistakes, you can keep your history in check and ensure you are in the best possible position financially. By taking the necessary small steps and security measures, you are making a big commitment: the commitment to invest in a happy and worry-free future.