The {Real Estate} Life: 5 Common Credit Mistakes

There are a few things that we often see people do in an attempt to help their credit score, but actually end up hurting their score.  My friend Anthony Davenport, President and CEO of Regal Financial, presents 5 common credit mistakes and how you can avoid making them:

Credit Mistake 1) Waiting too long to start building your credit.

The credit bureaus begin holding files on people when they turn 18. Although it may be intimidating, it is smart to get started on creating the ideal profile as soon as possible. Open a credit card, and just use it a few times a month. Be sure to pay it off in full every month. This will get you started on the path to a high credit score in the future.

Credit Mistake 2) Not checking your credit report.

A recent government study highlighted on 60 Minutes found as many as 40 million Americans have mistakes on their credit reports. You simply cannot trust the creditors and credit bureaus to report your credit history accurately. Be proactive and check your credit report at lease once every year.

Credit Mistake 3) Applying for too much credit too quickly.

Although it is smart to have 3-5 open accounts, applying for too much new credit too quickly will have a negative impact on your credit score. Regal Financial recommends acquiring no more than one new account in a six-month time period.

Credit Mistake 4) Closing credit card accounts.

The longer an account is open, the more impact it has on your credit score. If you have old credit cards, keep them active! As long as they have a good credit history, they are only helping your credit score.

Credit Mistake 5) Dealing with creditors over the phone without a plan.

Before contacting creditors about your accounts, you want to have a game plan. Simply calling them to dispute an account without any information to back up your claim could make things worse. Regal Financial has years of experience working with the credit bureaus and creditors to get items removed from credit reports. If you are unsure how to address an item, they can help!

 

You can enjoy a New York life with great credit!