A Good Credit Score

A Good Credit Score

Top 5 Ways to have a Crappy Credit Rating

Bad credit can be like a disease that simply gets worse over time. When you begin to have bad credit, you always think you’ll repair it at some point. Then you look back and it has been ten years with bad credit and no end in sight. People with bad credit seem to all do the same things and make the same mistakes. Here are a few.

1. You make just the minimum payment

It has been said time and time again, but it bears repeating. Simply making the minimum payment on your credit cards isn’t enough. Though this alone won’t ruin your credit, it is a habit that will get you in the hole. Once you get into a bigger hole, it is much more difficult to dig out.

2. You aren’t organized

People with bad credit have that credit rating because they never learned the value of organization. It takes time and effort to keep up with all of your payment dates, addresses, and other pertinent information. It pays to be extremely organized in this regard, though. Nothing will hurt an account more than a payment slip that was simply lost.

3. You’ve got too many credit cards

There is no reason to have five different credit cards, carrying a balance on each. When you have this many, there is a great temptation to spend more than you have and get way behind on your payments. There’s also the chance that you will begin to borrow against once card in order to pay the other. This vicious cycle of debt gets you nowhere.

4. You can’t recover from a bad start

Many people spend their thirties paying off the bad decisions that they made during their twenties. It isn’t unusual to make bad fiscal decisions when you are young, but you have to be able to overcome those mistakes once you get older. Don’t let a few outstanding credit card accounts from college cause you to have a complete credit collapse somewhere down the road. This type of thing can be fatal.

5. Lack of spending control

Bad consumer debt is one of America’s biggest problems. People take on terrible debt all of the time and it takes a while to recover from that. When trying to repair bad credit, you have to start at the root of the problem. For most, it is a lack of spending control. You can’t go around buying all sorts of useless consumer goods when you probably will not have the cash to pay that bill. Stomping out this problem is a big first step that can lead to success.

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