Credit Pitfalls

Building and managing your credit is a lifelong task. To keep your credit in good standing, there are several common pitfalls to avoid.

 
  • Late Payments - Payment history is one of the largest parts of your credit report, so even just a few late payments can do major damage to your credit.
  • Identity Theft - If someone gets hold of your personal information and uses it for his or her own personal gain, your credit report can suffer for years to come. To avoid identity theft, make sure to shred confidential mail and receipts, select uncommon passwords and check your credit report ever year or so to make sure there is no unauthorized activity.
  • Too Many Open Credit Lines - Even when you are trying to establish credit, it is important to remember that opening several accounts can actually lower your credit score. Too many open lines of credit such as, loans and credit cards, weaken your position when you are applying for a loan.